Part of the initial tax filing applications is the Blue tax return form. This application must be submitted within 3 months of establishment or before your first fiscal year end. If the deadline is missed it will be not be accepted and you will not be able to enjoy various Japan tax benefits. The benefits of the Blue form are as follows:
Carry forward net operating losses for 10 years
A company can carry forward net operating losses (NOLs) for the subsequent ten (10) years. If NOLs were recognized before March 31, 2018, you may only be able to enjoy nice (9) years of benefit.
Tax credit by increasing gross salary payment
If you increase gross salaries of your labor force from the previous year you may be entitled to a tax benefit.
Lump-sum depreciation of small assets
SME can fully expense a fixed asset when it is acquired if the purchase price is less than JPY 300,000.
Special tax depreciation for certain assets
When certain fixed assets are acquired you may be able to depreciate them more beneficially.