Why Are Suits Not Considered Deductible Expenses by Japanese Tax Offices?

【Koshida Accounting Firm Column Date:

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Hi, my name is Taisei Koshida, and I am a certified public accountant as well as a tax accountant.

I aim to assist non-Japanese business owners who struggle with reading or writing in Japanese. If you find the Japanese tax return system challenging, I can help you with your tax filings.

If you are unclear about the cost of suits in Japan, you might find this blog helpful.

 

Suits can be worn on personal occasions

The main reason is that suits can be worn on personal days, making them similar to regular clothing. Thus, tax offices do not recognize them as deductible expenses.

How can they be recognized as expenses?

For example, if a suit has a company name like “The Japan Company” prominently displayed on it, making it unsuitable for casual wear, it’s more likely to be considered a business expense. This is similar to how business uniforms are naturally accepted as expenses.

Costumes for public speakers and performers.

Similarly, the costume expenses for celebrities and public figures are seldom considered deductible. However, tax offices might allow exceptions for items clearly unsuitable for casual wear, such as mascot outfits or extremely flashy dresses.

 

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