RetireJapan

Hi all,
Currently employed, I have a side gig that might become my main source of income at some point in the future. My wife says we should start using the "blue form" for taxes (that is used by small businesses?) if/when this happens.

I have no idea where to begin with this thing, I can't find any information on it (in English preferred, but if there's a comprehensive site in Japanese I can give it a try). She's already saying we should buy some software to "do it for us", and I know the thing will be 100% in Japanese, and useless for me. She also says she could act as an "employee" of the business, who receives a salary. All of this sounds super complicated to me, for a tiny business that does not make a lot of money, and I'm wondering if it's worth the effort.

Any pointers? Someone who's done the blue form filings before? Is there a level of business income at which it "makes sense" or "does not make sense" to use the blue form?

Hello StockBeard

You are probably looking at the "個人事業" ("kojin jigyo", kind of "personal business", as opposed to registered). I have been using this status since I started freelancing.

However, I used an English speaking accountant since Day 1, and they informed me about this Blue Form and offered to apply for me first.

All I know is: you apply for it at the tax office, and the result is you get ¥650,000 discount on your taxable income every year.

So your taxable on your side gig will be something like:
taxable income (side gig) = Revenues - expense - blue sheet deduction

Thanks seb. On the surface it looks like I should take it. My side gig is not generating a huge amount of revenue, so a 650'000 yen discount would be very significant.