年末調整 (nenmatsu chousei), year-end tax adjustment, is an annual process in Japan where employers adjust the amount of income tax withheld from employees' salaries to match the actual tax owed for the year. This process ensures that the correct amount of tax is paid, avoiding both overpayment and underpayment. Employers calculate the total amount of salary and bonuses paid to each employee throughout the year and compare it to the tax that was already withheld. They then apply various deductions and exemptions that employees are eligible for, such as deductions for dependents, insurance premiums, and housing loans. The adjustments result in either a refund if too much tax was withheld or an additional payment if too little was withheld.
Employees must submit necessary documents, including forms detailing any changes in their personal situation that affect tax calculations, such as changes in dependents or marital status. These adjustments are typically performed between October and January of the following year. If any documents or information are missing, employees may need to file a tax return during the regular filing period from February 16 to March 15 of the following year to claim any eligible deductions or credits not accounted for during the year-end adjustment.
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
年末調整 (nenmatsu chousei), year-end tax adjustment, is an annual process in Japan where employers adjust the amount of income tax withheld from employees' salaries to match the actual tax owed for the year. This process ensures that the correct amount of tax is paid, avoiding both overpayment and underpayment. Employers calculate the total amount of salary and bonuses paid to each employee throughout the year and compare it to the tax that was already withheld. They then apply various deductions and exemptions that employees are eligible for, such as deductions for dependents, insurance premiums, and housing loans. The adjustments result in either a refund if too much tax was withheld or an additional payment if too little was withheld.
Year-end tax adjustment is 年末調整 (nenmatsu chousei) in Japanese.
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