Business
Japan — Business: Accounting
Japan's Blue Form (Aoiro Shinkoku) tax return system rewards rigorous bookkeeping: full double-entry bookkeeping (general ledger, journal, subsidiary ledgers) qualifies filers for a deduction of up to ¥550,000, rising to ¥650,000 if books are kept electronically or the return is e-filed via e-Tax. Under the 2026 Tax Reform Outline (released 19 December 2025), the top-tier deduction is set to rise further to ¥750,000 from 2027 for filers using both e-Tax and qualifying high-quality electronic bookkeeping. New Blue Form applicants must submit the 'Application for Filing the Blue Return' to their district tax office by 15 March of the year they intend to first file blue. Books and supporting documents must generally be retained for 7 years (5 years for some document categories).
Key facts
- Blue Form (Aoiro Shinkoku) requires double-entry bookkeeping to access deductions of up to ¥550,000-650,000.
- 2026 Tax Reform Outline: top-tier deduction rises to ¥750,000 from 2027 for e-Tax + high-quality electronic bookkeeping filers.
- New Blue Form applications are due by 15 March of the year filing is intended to begin.
- Books/documents must be retained for 7 years generally (5 years for certain categories).
Steps
- Apply for Blue Form status — Submit the application to the district tax office by 15 March of the intended first filing year.
- Maintain double-entry books — General ledger, journal, and subsidiary ledgers, ideally kept electronically for the higher deduction tier.
- Retain records — Keep books and supporting documents for 7 years (5 years for some categories).
Timelines
- Blue Form application deadline: 15 March of intended first filing year
- Record retention period: 7 years (5 years for some documents)
- Higher ¥750,000 deduction tier takes effect: from 2027, per the 2026 Tax Reform Outline
Required documents
- Application for Filing the Blue Return
- Double-entry bookkeeping records
Common mistakes
- Using single-entry bookkeeping and missing out on the ¥550,000-650,000 Blue Form deduction, which requires double-entry books.
- Missing the 15 March Blue Form application deadline and defaulting to White Form (no special deduction) for that tax year.