DenpyoDenpyo

Expense Category Reference

Categories

Expense Category Reference

Complete list of expense categories (勘定科目) for Japanese tax filing.

January 1, 2026
|Source:National Tax Agency

For general reference only. Consult a tax professional for individual advice. Last verified: January 1, 2026 · Source: 国税庁

This is a complete list of expense categories (account titles) used for tax filing. We explain common categories for freelancers with examples of what can and cannot be deducted.

Check with Expense Checker

Not sure if an expense is deductible? Try our Expense Checker tool.

Try it

Travel & Transportation

Business travel and transportation expenses

Fully Deductible

Deductible Examples

  • +Train/bus fares (business travel, not commuting)
  • +Business trip transportation (bullet train, flights)
  • +Hotel expenses during business trips
  • +Taxi fares (when necessary for business)
  • +Parking fees (business use)

Non-Deductible Examples

  • -Commuting from home to office (for self-employed)
  • -Personal travel expenses
  • -Family vacation expenses
  • -Tourism-related expenses

Special Rules

Business travel should be reimbursed at actual cost. Per diem requires written policy. International travel requires exchange rate records.

Meeting Expenses

Expenses for business meetings

Fully Deductible

Deductible Examples

  • +Meeting room rental
  • +Food/drinks during meetings (under ¥5,000 per person)
  • +Coffee during client meetings
  • +Online meeting tool subscriptions
  • +Printing costs for meeting materials

Non-Deductible Examples

  • -Meals over ¥5,000 per person (→ Entertainment)
  • -Internal employee-only social gatherings
  • -Personal dining events

Special Rules

Meals under ¥5,000 per person are fully deductible as meeting expenses. Above that becomes entertainment. Record attendees and purpose.

Entertainment Expenses

Client entertainment and gifts

Fully Deductible

Deductible Examples

  • +Client entertainment meals
  • +Seasonal gifts to business partners (summer/year-end)
  • +Golf entertainment (including green fees)
  • +Congratulatory/condolence payments to clients
  • +Gifts to business partners

Non-Deductible Examples

  • -Meals with personal friends
  • -Gifts to family members
  • -Personal social expenses
  • -Gifts to non-business contacts

Special Rules

Sole proprietors can deduct 100% per Income Tax Law Article 37. SMEs (capital < ¥100M) can deduct 100% up to ¥8M/year per Special Taxation Measures Act. Must be reasonable amounts. Items over ¥100,000 require extra scrutiny. Keep records of recipient, purpose, and amount.

Consumables & Supplies

Office supplies and consumable items

Fully Deductible

Deductible Examples

  • +Stationery (pens, notebooks, folders)
  • +Copy paper and printer ink
  • +Computer peripherals (under ¥100,000)
  • +Software (under ¥100,000)
  • +Business card printing

Non-Deductible Examples

  • -Personal stationery
  • -Items over ¥100,000 (→ Fixed assets for depreciation)
  • -Home-use consumables

Special Rules

Items under ¥100,000 can be expensed immediately. ¥100,000-¥200,000 can be depreciated over 3 years. Under ¥300,000 can be fully expensed with Blue Return status.

Communication Expenses

Phone, internet, and postal expenses

50% Deductible

Deductible Examples

  • +Business mobile phone charges
  • +Office internet connection
  • +Landline phone charges
  • +Postage and courier fees
  • +Domain and server hosting

Non-Deductible Examples

  • -Personal mobile phone charges
  • -Home-only internet charges
  • -Personal mail/packages

Special Rules

For home offices, prorate by business usage percentage. Typically 30-50%. Call logs and usage records are recommended for documentation.

Allocation Guide: Home office allocation for mixed personal/business use of phone and internet. Can be calculated by usage time or days. Higher percentages may be allowed with usage records like call logs as documentation.

Utilities

Water, electricity, gas expenses

30% Deductible

Deductible Examples

  • +Office electricity
  • +Office gas
  • +Office water
  • +Office heating/cooling

Non-Deductible Examples

  • -Utilities for personal areas of home
  • -Water for personal living spaces

Special Rules

For home offices, calculate by floor area ratio or usage time. Typically 20-40%. Keep records of calculation basis.

Allocation Guide: Home office allocation based on floor area ratio. 30% represents typical single-room office in a home (e.g., 10㎡ workspace in 30㎡ apartment). Electricity can also be calculated by number of outlets used for business.

Rent & Lease

Office rent and land lease payments

50% Deductible

Deductible Examples

  • +Office or shop rent
  • +Coworking space fees
  • +Parking fees (business use)
  • +Warehouse rental
  • +Meeting room rental fees

Non-Deductible Examples

  • -Rent for personal living space
  • -Personal parking fees
  • -Residential-only lease payments

Special Rules

For home offices, prorate by floor area. Use dedicated business space ratio if applicable. Security deposits are assets, key money is deferred.

Allocation Guide: Home office allocation based on floor area. 50% assumes roughly half the space is used for business. If you have dedicated office space, calculate the exact area ratio for potentially higher deduction.

Equipment Rental

Equipment and vehicle rental/lease

50% Deductible

Deductible Examples

  • +Multifunction printer/copier lease
  • +Vehicle lease (business use)
  • +Equipment rental
  • +Event equipment rental
  • +Server hardware rental

Non-Deductible Examples

  • -Personal vehicle lease
  • -Home appliance rental
  • -Personal event equipment

Special Rules

Vehicle leases should be prorated by business usage. Mileage logs and business use records serve as valid documentation.

Allocation Guide: Home office allocation for mixed personal/business use such as vehicle leases. 50% assumes equal personal and business use. With mileage logs or business use records, higher percentages based on actual usage are possible.

Fees & Commissions

Bank fees, professional fees, commissions

Fully Deductible

Deductible Examples

  • +Bank transfer fees
  • +Payment processing fees (PayPal, Stripe, etc.)
  • +Tax accountant/CPA fees
  • +Legal fees
  • +Labor consultant fees

Non-Deductible Examples

  • -Personal bank account fees
  • -Personal legal consultation
  • -Non-business-related fees

Special Rules

Payments to professionals may require withholding tax. International transfer fees are deductible if business-related.

Advertising & Promotion

Marketing and advertising expenses

Fully Deductible

Deductible Examples

  • +Online advertising (Google, Facebook, etc.)
  • +Flyer and brochure production
  • +Signage production
  • +PR expenses
  • +Trade show exhibition fees

Non-Deductible Examples

  • -Personal social media advertising
  • -Non-business promotions

Special Rules

General public advertising is promotional expense; specific client gifts may be entertainment. High-value promotional items need review.

Insurance Premiums

Business insurance premiums

Fully Deductible

Deductible Examples

  • +Business fire insurance
  • +Liability insurance
  • +Business vehicle insurance
  • +Workers compensation insurance
  • +Comprehensive store insurance

Non-Deductible Examples

  • -Life insurance (→ Life insurance deduction)
  • -Personal vehicle insurance
  • -Home fire insurance (personal portion)

Special Rules

Home office fire insurance should be prorated. Vehicle insurance should be prorated by business use percentage.

Repairs & Maintenance

Repair and maintenance expenses

Fully Deductible

Deductible Examples

  • +Computer repair
  • +Office repairs
  • +Equipment maintenance
  • +Vehicle repairs (business use)
  • +Software maintenance fees

Non-Deductible Examples

  • -Personal item repairs
  • -Capital improvements (increases asset value)
  • -Home repairs (personal portion)

Special Rules

Restoration expenses are repairs. Value-enhancing expenses are capital improvements requiring depreciation. Under ¥200,000 may be treated as repairs.

Outsourcing & Subcontracting

Payments to contractors and freelancers

Fully Deductible

Deductible Examples

  • +Design outsourcing
  • +Programming outsourcing
  • +Writing/copywriting outsourcing
  • +Translation outsourcing
  • +Business process outsourcing

Non-Deductible Examples

  • -Personal project fees
  • -Non-business outsourcing

Special Rules

Payments to individuals may require withholding (design, writing fees). Payment statements may be required. Keep contracts and invoices.

Books & Subscriptions

Books, magazines, and subscriptions

Fully Deductible

Deductible Examples

  • +Professional books related to business
  • +Industry magazine subscriptions
  • +Online information services
  • +Paid news services
  • +Business books

Non-Deductible Examples

  • -Personal hobby books
  • -Non-business magazines
  • -Entertainment publications

Special Rules

Business relevance is key. Note book titles on receipts. E-books are also eligible.

Training & Education

Professional development and training

Fully Deductible

Deductible Examples

  • +Seminar registration fees
  • +Online course fees
  • +Professional certification (business-related)
  • +Training travel expenses
  • +Study group participation fees

Non-Deductible Examples

  • -Personal hobby courses
  • -Non-business certifications
  • -Unrelated seminars

Special Rules

Training must be directly necessary for business. Certifications need clear business relevance. High amounts may attract audit attention.

Employee Benefits

Employee welfare and benefits

Fully Deductible

Deductible Examples

  • +Employee health checkups
  • +Employee congratulatory/condolence gifts
  • +Employee trips (reasonable amounts)
  • +Employee meals (certain conditions)
  • +Uniforms and work clothes

Non-Deductible Examples

  • -Benefits for the business owner
  • -Excessive benefits to specific employees only
  • -Unreasonably high expenditures

Special Rules

Sole proprietors themselves are not eligible. Benefits should apply to all employees. Written policies are recommended.

Miscellaneous

Other business expenses

Fully Deductible

Deductible Examples

  • +Small office supplies
  • +Waste disposal fees
  • +Business laundry/cleaning
  • +Small transfer fees
  • +Other small uncategorizable expenses

Non-Deductible Examples

  • -Personal miscellaneous expenses
  • -Non-business expenditures

Special Rules

High miscellaneous expenses attract audit attention. Categorize properly when possible. Keep under 5% of total expenses.

Depreciation

Depreciation of fixed assets

Fully Deductible

Deductible Examples

  • +Computer depreciation (over ¥100,000)
  • +Business vehicle depreciation
  • +Office interior work depreciation
  • +Equipment depreciation
  • +Building depreciation

Non-Deductible Examples

  • -Personal asset depreciation
  • -Assets not used for business
  • -Land (not depreciable)

Special Rules

Useful life varies by asset type. Straight-line or declining-balance methods available. Blue Return allows full deduction for items under ¥300,000.

Software & Services

SaaS and software expenses

Fully Deductible

Deductible Examples

  • +Accounting software subscriptions
  • +Cloud services (AWS, Google Cloud, etc.)
  • +Microsoft 365, Adobe CC, etc.
  • +Project management tools
  • +CRM/SFA tools

Non-Deductible Examples

  • -Personal streaming services
  • -Non-business game software
  • -Personal cloud storage

Special Rules

Monthly/annual subscriptions are expensed by period. One-time purchases over ¥100,000 are depreciated.

Other

Other categorizable expenses

Fully Deductible

Deductible Examples

  • +Business expenses not fitting other categories

Non-Deductible Examples

  • -Personal expenditures
  • -Non-business expenditures

Special Rules

Categorize properly when possible. "Other" should be a last resort.

Related Guides

What Expenses Are Deductible? [2026]

Comprehensive list of potentially deductible business expenses for freelancers.

Expense Checker Tool

Instantly check if an expense is deductible

Denpyo

Track expenses, maximize deductions

Denpyo scans your receipts and finds tax savings automatically.

Try Free