All guides · 5 min read · updated 2026-04-22
Blue Return (青色申告) for sole proprietors
When the ¥650k blue-return deduction makes sense, and the 2-month / Mar-15 application rule.
Sole proprietors (個人事業主) can elect the 青色申告 (blue-return) regime in exchange for a deduction of up to ¥650,000. The catch: you must apply in advance with the 青色申告承認申請書 (bundled here as form 11) by whichever is earlier of:
- March 15 of the year for which you want the election to apply, or
- Within 2 months of opening your business (開業届 / form 05).
Blue-return also requires proper double-entry bookkeeping — which is what the ledger in this app produces under the hood.
Key blue-return benefits
- Up to ¥650,000 special deduction (¥550,000 without e-Tax, ¥100,000 for single-entry).
- 3-year net-operating-loss carry-forward.
- Family-member salaries become deductible with the 専従者給与 election.
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