Blue Return Tax System: Who Qualifies and What You Get
Learn how sole proprietors can reduce their taxable income through specific tax deductions and the requirements to qualify.
The Blue Return Tax System is a tax filing method designed for sole proprietors to reduce their taxable business income.
Who it's for
This system is available to sole proprietors who maintain proper accounting records for their business.
What you get
By using this system, you can receive a deduction of up to ¥650,000 from your total business income.
What it costs you
To qualify for these benefits, you must use double-entry bookkeeping, which is a more detailed method of recording all financial transactions. You must also ensure your tax filings are submitted on time.
The catch to know
You cannot simply decide to use this system when it is time to file your taxes. You must apply for this specific status in advance of the tax year.
How to apply
- Review your bookkeeping methods to ensure you can maintain double-entry records.
- Submit an application for the special status before the start of the tax year.
- Maintain accurate, detailed accounting records throughout the year.
- File your tax returns according to the requirements of the National Tax Agency.