Equipment and depreciation
Capitalization, useful life, low-value assets, and blue-return small-asset relief.
Equipment that lasts beyond the year is generally capitalized and depreciated over its useful life rather than expensed at once, but low-value-asset rules, pooled depreciation, and blue-return small-asset relief can let you write off smaller items faster.
Effective: 2026-01-01 to 2026-12-31
Professional review pending — treat as draft and confirm with the authorities.
Key points
- Long-life assets are capitalized and depreciated, not expensed at once.
- The general depreciation line highlighted by the NTA is assets costing ≥¥100,000.
- Low-value and pooled-depreciation rules speed up smaller items.
- Blue-return filers get a small-asset immediate-expensing relief.
When to capitalize
An asset used beyond the current year (a computer, camera, or furniture) is normally capitalized and depreciated over a statutory useful life. The NTA’s general guidance highlights depreciation for assets costing at least ¥100,000. Keep a fixed-asset register recording cost, acquisition date, useful life, and accumulated depreciation.
Faster write-offs
Several rules speed things up: items under a low-value threshold can be expensed immediately, a pooled (lump) depreciation over three years can apply to a mid-range band, and blue-return filers have a small-asset immediate-expensing relief within an annual limit. Consumption-tax treatment and any subsidy can change the depreciable base, so record those adjustments too.
Who this is for
- Freelancers buying equipment
- Landlords with building assets
What this is not
- Exact useful-life tables (verify by asset)
- Expensing a capital asset all at once when it should be depreciated is a common error.
Frequently asked questions
Do I need to file a tax return in Japan?
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.