“Blue return” Please do not forget this.

Today, I would like to talk about the blue return system in Japan.
If corporate taxpayer is approved as blue return tax payer by the tax office you can get various privileges.

– You can carryforwards the loss in the fiscal year to each 9years.
– You can refund corporate tax of last year by carrying back loss
– Tax office is prohibited to correct tax by estimation method.
– You can do lump-sum depreciation for depreciable assets less than 300,000yen.

The purpose of this system is to spread the self-assessment system of tax return and to promote proper bookkeeping. You must obtain approval before you can file a blue return. The procedure is simple, you just have to submit the application to the tax office with no fee.

Blue return procedure

Before you can be filed as a blue tax return, you need to get approval from the tax office. The flow is as follows.

(1) Filling in the required items on the blue return application form.
(2) Bring, it by mail, or submitting by E-Tax to the tax office.

You can download the blue tax return application form from the National Tax Agency website.

The deadline for submitting the application is the day three months after the establishment date.

If you do not file in blue, it will be white return. If you do not file in blue, or if you want to file in blue but miss the application deadline, you must file in “white”. White tax return is also one of the tax filing methods. You can do the accounting work easier than blue tax return. You can do the bookkeeping by “single-entry ” if you are white return.

The white return is easy way but you may lost the various benefits available for blue return.

So you should get blue return!