交際費 (kosaihi) in Japanese refers to entertainment expenses that businesses incur to build and maintain relationships with clients and business partners. These expenses include meals, gifts, travel, and event costs related to business entertainment. The primary purpose of kosaihi is to facilitate business relationships, enhance client interactions, and promote goodwill.
In accounting, entertainment expenses are treated differently based on the amount and nature of the expenditure. For example, expenses incurred for meals with clients can be partially deductible, typically up to 50% of the cost, provided certain documentation requirements are met. This includes keeping records of the date, participants, and the purpose of the meeting. Additionally, small and medium-sized enterprises (SMEs) with capital of 100 million yen or less can choose between deducting up to 800,000 yen of kosaihi annually or 50% of their total entertainment expenses.
Expenses that exceed certain thresholds or do not meet the specific criteria might not be fully deductible. It's important to distinguish entertaiment expenses from other similar expenses such as 会議費 (kaigihi = meeting expenses) and 福利厚生費 (fukuri kousei hi = welfare expenses), which have different accounting treatments and tax implications in Japan. Proper categorization and documentation are crucial for accurate tax reporting and compliance.
See Also
In Japanese, the term 経費 (keihi) refers to "expenses" or "business expenses." These are the costs incurred in the process of running a business. Keihi can include a wide range of expenditures such as rent for office space, utilities like electricity, water, and internet, employee salaries and wages, office supplies, travel expenses, marketing and advertising costs, and depreciation of assets. Properly tracking and managing keihi is essential for maintaining accurate financial records, budgeting, and ensuring compliance with tax regulations. In Japan, businesses must be meticulous in documenting and categorizing their expenses to maximize tax deductions and maintain transparency with the tax authorities.
滞納 (tainou) refers to the failure to pay taxes or other required payments by the due date. This can lead to several consequences depending on the type of payment and the length of the delay.
For example, if national health insurance premiums are overdue, the individual might initially receive reminders and then a "資格証明書" (qualification certificate) instead of a regular insurance card, requiring them to pay medical costs upfront and seek reimbursement later. Continued non-payment can result in loss of benefits, such as high-cost medical expense coverage, and potentially lead to asset seizure if the overdue amounts remain unpaid.
In the case of local taxes like resident tax, late payments result in additional charges called 延滞金 (entairyou), which accumulate daily based on the amount owed and the length of the delay. Persistent non-payment can lead to more severe actions, including the seizure of assets like bank accounts or property.
For fixed asset taxes, the penalties are similar. An initial interest rate is applied for the first month of delay, which increases significantly after this period. If payments are not made even after receiving several reminders, the authorities may ultimately seize assets to cover the unpaid taxes
特段 (tokudan) is a Japanese term that translates to "special" or "particular" in English. It is used to describe something that is out of the ordinary or requires specific attention. For example, you might hear it in phrases like 特段の事情 (tokudan no jijou), meaning "special circumstances," or 特段の理由 (tokudan no riyuu), meaning "particular reason."
In business contexts, 特段 might be used to refer to exceptional conditions or considerations that need to be addressed separately from the usual procedures or rules.
Frequently Asked Questions
交際費 (kosaihi) in Japanese refers to entertainment expenses that businesses incur to build and maintain relationships with clients and business partners. These expenses include meals, gifts, travel, and event costs related to business entertainment. The primary purpose of kosaihi is to facilitate business relationships, enhance client interactions, and promote goodwill.
Entertainment expenses is 交際費 (kosaihi) in Japanese.
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