Comprehensive list of potentially deductible business expenses for freelancers.
For general reference only. Consult a tax professional for individual advice. Last verified: January 1, 2026 · Source: 国税庁
For an expense to be deductible, it must be "necessary and ordinary for conducting business." Specifically, it must meet these three requirements:
To claim expenses, you must keep receipts. Digital storage compliant with the Electronic Books Preservation Act is also acceptable. Retention period is generally 7 years.
If you work from home, you can deduct the business portion of your expenses.
Tip: Keep records of your calculation basis (area measurements, etc.). This may be checked during tax audits.
Business travel expenses are fully deductible. Personal vehicles are prorated by business use.
Tip: If using a vehicle for both business and personal, keep mileage logs. Typical business use is around 50%.
Communication expenses for business. Prorate if used for both personal and business.
Tip: Review call logs to calculate business vs personal ratio. Typically 30-50%.
Equipment and supplies for business. Under ¥100,000 can be expensed immediately, above is depreciated.
Tip: Blue Return filers can expense items under ¥300,000 immediately. Always keep receipts.
Client meetings and entertainment. Category varies by amount and purpose.
Tip: Sole proprietors have no limit on entertainment expenses (fully deductible). Must be reasonable amounts. Record attendees and purpose.
Expenses for skills directly necessary for business are deductible.
Tip: Being able to explain business relevance is key. Note course or book names on receipts.
Business trip expenses are fully deductible. Per diem requires written policy.
Tip: Business travel should be reimbursed at actual cost. If using per diem, create policy in advance.
Outsourcing and professional service fees are deductible.
Tip: Payments to individuals may require withholding. Keep contracts and invoices.
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