When year-end adjustment is enough and when you must file a 確定申告.
Many employees are settled by year-end adjustment; you generally must file if you have side income over ¥200,000, multiple employers, self-employment, or want certain deductions.
If you are a single-employer salaried worker with taxes withheld and your employer completed your year-end adjustment (年末調整), your income tax is usually already settled and no return is needed. The year-end adjustment handles standard deductions and reconciles what was withheld.
You generally must file a 確定申告 if you have more than ¥200,000 of side income, two or more employers, self-employment or business income, or large investment/crypto gains not otherwise settled. You should also file — even when not required — to claim deductions like significant medical expenses, the first-year mortgage credit, or donations (including some Furusato Nozei cases). Filing runs Feb 16 – Mar 15 through e-Tax, with documentation for each deduction.
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Many employees do not, because tax is settled by year-end adjustment (年末調整). You generally must file (確定申告) if you have side income over ¥200,000, two or more employers, self-employment income, sizeable investment or crypto gains, or you want to claim deductions like large medical costs or a first-year mortgage credit. Filing season is Feb 16 – Mar 15 via e-Tax. When unsure, check the NTA guidance or ask a 税理士.
Crypto profits are treated as miscellaneous income (雑所得) and taxed at your marginal rate — combined with resident tax this can reach roughly 55%, unlike the ~20% flat rate for listed stocks. Every disposal is taxable, including selling for yen, trading one crypto for another, and spending crypto on goods. You must track cost basis and calculate gains, so recordkeeping tools are important, and larger activity often warrants a tax accountant.
The blue return is a filing status that rewards proper bookkeeping. With double-entry books filed electronically, you can deduct up to ¥650,000 from your income, carry losses forward for three years, and deduct family salaries. The trade-off is more disciplined recordkeeping — which cloud accounting software largely automates. For most freelancers with steady income, the tax saving clearly outweighs the effort.