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Business expenses as a freelancer 2020/10/22 10:05
Hi everyone,
I just started freelancing here as an illustrator, and my wife (japanese) told me to keep receipts for everything I buy for work (new monitors, digital tablets, professional courses, etc), because I will get to pay a lower tax rate next year.

Can anyone confirm this? Can one file those expenses as "business related" even if he is a freelancer, and have the tax rate reduced? Or do you need to be officially a company to do that?

Thanks in advance!
by CaptNemo  

Re: Business expenses as a freelancer 2020/10/22 14:42
Yes. She is correct.

You don't have to be a company - even as an individual, if you do your own tax filing, you report your revenues, your expenses (computer equipment/devices, travel expenses if you go meet with your clients, etc.) , your deductibles (pension and health insurance contributions for example), and that determines your taxable income.
(I'm a freelance worker myself - not a company - and I collect all the business related receipts and do my tax filing too.)
by AK rate this post as useful

Re: Business expenses as a freelancer 2020/10/22 17:24
Awesome, thanks! Way easier than in other countries :)
by CaptNemo rate this post as useful

Re: Business expenses as a freelancer 2020/10/23 23:51
Just to add, the paperwork is a bit tricky if you're not used to it. You can get free advice by phoning or visiting your local public tax office (zei-mu-sho). You can file your 個人事業主開業届 at the same time. Usually, free counseling sessions are held around February, but I'm not sure how it would be done under Covid-19.

So anyway, collect everything including receipts you may not think is related to your work (because you'll be surprised at the many things that are concerned to be related), and once the year 2020 is over, consult at the tax office unless you're hiring an accountant. An accounting software would also make things easier.
by Uco rate this post as useful

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