Blue Taxpayer

Submission of an application for blue tax filing status has to be done by whichever is earlier, either three months from the commencement of PE or the end of the first fiscal year.

 Those who file the blue tax return must maintain proper accounting books in Japan. This includes saving receipts and maintaining records in Japan.

https://www.nta.go.jp/english/taxes/individual/12010.html

 In Japan, a self-assessment system has been established for income taxes, where taxpayers correctly calculate the income amount and tax amount according to the applicable tax law and pay tax by themselves.

 In order to correctly calculate and declare the amount of income generated during the year, it is necessary to record the status of daily transactions related to the income and necessary expenses, as well as to retain the documents created and received for the transaction.

 For those who maintain a certain standard of bookkeeping practice and make correct declaration based on the bookkeeping, there is a blue return system where filers can receive advantageous treatment in the calculation of income.