White vs Blue Filing
White Filing vs Blue Filing — Comparison Guide
A complete comparison of white filing (白色申告) and blue filing (青色申告): decision flowchart, detailed benefits, and how to switch.
Which filing type is right for you?
Use this flowchart to determine whether white filing (白色申告) or blue filing (青色申告) is right for your situation.[1]
Feature Comparison
A side-by-side comparison of white filing (白色申告) and blue filing (青色申告) across key features.[1][2]
None
Up to ¥650,000 (double-entry + e-Tax)
Simple bookkeeping (単式簿記)
Double-entry bookkeeping (複式簿記) for ¥650K deduction
Yes (for business income / 事業所得)
Yes (for business income / 事業所得)
Not available
3-year carryforward
Fixed deduction (事業専従者控除): spouse ¥860K, others ¥500K
Full salary deductible as expense (with notification)
Only assets under ¥100,000
Assets under ¥300,000 fully expensed (up to ¥3M/year)
Not available
Available (up to 5.5% of receivables, etc.)
Not required
Must file Blue Filing Approval Application (青色申告承認申請書) by March 15
Blue Filing Benefits in Detail
Each blue filing benefit explained with concrete examples and comparisons to white filing.[2]
2022 NTA Circular Revision
Proper books maintained → presumed business income (事業所得)
Whether double-entry or simple bookkeeping, maintaining proper records generally qualifies income as business income.
No books + revenue ≤ ¥3M → miscellaneous income (雑所得)
Without proper books, income ≤ ¥3M is generally classified as miscellaneous income (unless proven otherwise).
When White Filing Is Fine
In these situations, there's no pressing need to switch to blue filing (青色申告).
Salaried worker with small side income
If side income (miscellaneous income / 雑所得) is ≤¥200,000/year, you don't even need to file (except for resident tax). Even above ¥200K, white filing with simple books works fine for small scale.
First-year freelancer
You might miss the blue filing application deadline in your first year (must apply within 2 months of starting). It's common to file white the first year and switch to blue from the next year.
Very simple business with few transactions
If you have very few transactions per year and minimal expenses, the overhead of double-entry bookkeeping may not be worth it. Simple bookkeeping is sufficient.
How to Switch to Blue Filing
Three steps to switch from white filing (白色申告) to blue filing (青色申告).[3]
Submit the Blue Filing Approval Application (青色申告承認申請書)
Submit to your local tax office by March 15 of the tax year (or within 2 months of starting a new business). Can also be submitted via e-Tax.
Start double-entry bookkeeping (複式簿記)
Double-entry bookkeeping is required for the ¥650K deduction. Cloud accounting software (freee, Money Forward, Yayoi) makes this easy with auto-categorization.
File via e-Tax for the full ¥650,000 deduction
For the maximum ¥650K deduction, you must e-file via e-Tax (paper filing reduces it to ¥550K). Just need a My Number Card and smartphone.
Related Glossary Terms
Key terms referenced in this guide. Click to view full definitions with examples.