I’m currently planning on starting a new business in Japan and set up a Sole Proprietor/Kojin Jigyo. I’m planning on consulting with a Tax expert soon, but was just wondering what kind of things can I put as business expenses. I read somewhere that part of my house rent can also be considered as business expense. Is this true?
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Join your city’s Society of Industry and Commerce. (Shokokai) It’s ¥12,000 a year and I think there’s was a ¥5000 initial membership fee. In my experience, these guys have been extremely helpful and supportive. You can claim a % of everything related to your business: house, car, utilities, retirement, insurance, renovations, etc.
The standard for depreciation here is anything over 10万円 needs to be depreciated over a set number of years. However, sole proprietors (blue sheet) can claim instant depreciation for anything up to 30万円.
As you mentioned, rent can be considered part of the business expense. Same with electricity etc. The general rule is 50% I believe, but you should contact an accountant to confirm that.
If your Japanese is good, there are a lot of YouTube videos about this. I know because my husband spent months watching them, haha.
/r/JapanFinance would be a better place to ask, but as someone else mentioned, watching YouTube videos will be a great source of information. All in Japanese, of course.