給与所得 (kyūyo shotoku) refers to the income that employees receive from their employers in the form of wages, salaries, and bonuses. It is a significant category of income under Japan's tax law and is subject to income tax. The taxable salary income is calculated by subtracting the "salary income deduction" (給与所得控除 = kyuyoshotoku kojo) from the gross salary. This deduction accounts for various work-related expenses that salaried employees may incur and varies based on the total salary income. For example, for annual income up to 1,800,000 yen, the deduction is 55% of the income plus 100,000 yen. Different percentage deductions and additional amounts apply for higher income levels, up to a maximum deduction limit.

Employees can also claim specific deductions such as the "special expense deduction" (特定支出控除 = tokuteishi shutsu kojo), which covers work-related expenses like commuting costs, relocation costs due to job transfers, and costs for obtaining qualifications or attending training related to their job.

Salary income is typically subject to withholding tax, where employers deduct the estimated tax amount from the employee's paycheck and remit it to the tax authorities on their behalf. At the end of the year, a final adjustment (年末調整 = nenmatsu chosei) is made to reconcile any differences between the estimated and actual tax owed, ensuring the correct amount of tax is paid.

相続税 (sozokuzei), inheritance tax, is a tax imposed on the transfer of assets from a deceased person to their heirs. The tax is calculated based on the total value of the deceased's estate after deducting any debts and funeral expenses. This value is then reduced by a basic exemption amount, which is 30 million yen plus 6 million yen multiplied by the number of statutory heirs.

The calculation of inheritance tax involves several steps. First, the total value of the estate is determined. Then, the basic exemption is subtracted to find the taxable estate value. The remaining amount is divided according to the statutory inheritance shares, and each share is taxed at progressive rates ranging from 10% to 55% based on the size of the share. After this, any applicable tax credits or deductions are subtracted to find the final tax amount due.

Special provisions exist for business succession, which can defer or reduce the inheritance tax burden to help maintain family-owned businesses. These provisions include measures to defer tax payments or reduce the taxable value of business assets under certain conditions.

青色申告 (ao-iro shinkoku), blue tax return, is a tax filing system in Japan offering significant benefits to individuals and small business owners who maintain detailed accounting records using double-entry bookkeeping. Compared to the simpler white form tax filing (白色申告, shiro-iro shinkoku), the blue tax return in Japan provides substantial tax advantages.

One of the main benefits of the blue tax return is the special blue return deduction (青色申告特別控除 = aoiro shinkoku tokubetsu kojo), which can reduce taxable income by up to 650,000 yen if filed electronically via e-Tax or using electronic bookkeeping. Without electronic filing, the deduction is 550,000 yen. Additional benefits include the ability to carry forward net operating losses for up to three years, deducting family member salaries as business expenses, and using specific depreciation provisions for small assets.

To qualify for the blue tax return, individuals must file an application for approval by March 15 of the tax year they wish to start using the system. This application must be submitted to the relevant tax office. Additionally, taxpayers need to submit a detailed balance sheet and profit-and-loss statement along with their tax return.

The blue tax return is especially advantageous for freelancers, sole proprietors, and small business owners who want to maximize available tax deductions and credits.

適格請求書発行事業者 (tekikaku seikyusho hakko jigyosha), qualified invoice issuing business, refers to businesses registered to issue qualified invoices (適格請求書 = tekikaku seikyusho, "qualified invoices") under Japan's new invoice system, introduced on October 1, 2023. These invoices are essential for buyers to claim input tax credits for consumption tax.

To become a qualified invoice issuing business, a business must first be a taxable entity and submit an application to the tax office. The application must include specific documents such as the registration application form and identity verification documents. Once approved, the business receives a registration number, which must be included on all issued invoices.

The registration process and adherence to the invoicing requirements are critical for compliance and ensuring that business partners can claim their input tax credits. Failure to issue these qualified invoices can result in reduced business transactions or demands for price reductions from buyers who cannot claim their tax credits.

印紙税 (inshi zei), stamp tax, is a tax imposed on certain documents in Japan, such as contracts, receipts, and agreements. These documents are legally required to have revenue stamps affixed to them, serving as evidence that the tax has been paid. Documents subject to revenue stamps include various types of contracts like sales contracts for real estate and other high-value transactions, loan agreements, and receipts for payments over a certain amount. For example, receipts for transactions over 50,000 yen require a revenue stamp. The amount of the revenue stamp depends on the type and value of the document. For instance, the tax on a receipt for a payment of 100,000 yen is 200 yen.

There are exemptions where revenue stamps are not required, such as for non-commercial transactions, receipts for payments made by credit card, and electronic contracts, which do not require physical documentation.

扶養控除申告書 (fuyou koujo shinkokusho), Declaration of Dependent Deduction, officially known as the "給与所得者の扶養控除等（異動）申告書" (kyūyo shotokusha no fuyou koujo-to [ido] shinkokusho), is a document that employees in Japan submit to their employers for year-end tax adjustment purposes. This form is necessary for claiming income tax deductions related to dependent exemptions.

The form allows employees to declare their dependents, such as spouses, children, or other family members, who qualify for tax deductions. It includes details about each dependent, such as their relationship to the employee and their income levels. The main deductions that can be declared through this form include the spousal deduction (配偶者控除 = haiguusha koujo) and the dependent deduction (扶養控除= fuyou koujo).

The spousal deduction applies if the spouse's annual income is 1.03 million yen or less, and the taxpayer's income is below specific thresholds. The dependent deduction applies to dependents under certain conditions, such as age and income criteria, and can significantly reduce the employee's taxable income.

Employees typically fill out and submit this form during the year-end adjustment period (年末調整 = nenmatsu chousei), which occurs from October to January. Proper submission ensures accurate tax calculations and helps employees benefit from applicable tax reductions.