Japanese Business Glossary

年調過不足税額 (nenchou kafusoku zeigaku) refers to the annual tax adjustment amount for withholding tax in Japan. This adjustment occurs at the end of the year when an employer reconciles the total amount of tax withheld from an employee's salary throughout the year with the actual tax liability of the employee.

If there is an overpayment (過 = ka), the excess amount is refunded to the employee. If there is an underpayment (不足 = fusoku), the employee must pay the additional amount. This reconciliation process ensures that the correct amount of tax has been paid over the course of the year, considering any changes in income, deductions, or tax credits.

The process involves comparing the cumulative amount of withholding tax deducted from the employee's salary with the employee's total tax liability for the year. The result of this comparison determines whether there is a tax overpayment or underpayment, which then needs to be adjusted accordingly.

修繕費 (shūzenhi), repair expenses or maintenance costs, refers to the costs incurred for repairing or maintaining property, equipment, or other assets. These expenses are typically categorized as operating expenses for businesses and are necessary for keeping assets in good working condition. Repair expenses can include costs for fixing damages or malfunctions, regular maintenance fees to prevent future issues, and replacement parts and labor costs associated with repairs. In accounting, shuzenhi is important for tracking the costs associated with maintaining the operational efficiency of business assets. These expenses are often deductible for tax purposes, depending on specific regulations and the nature of the expenses.

繰延資産 (kurinobe shisan) refers to costs that have been incurred but are not immediately expensed on the income statement, i.e., deferred assets. Instead, these costs are capitalized and amortized over a specific period of time.

Deferred assets typically include expenditures such as startup costs, development expenses, and large-scale marketing campaigns that provide benefits over multiple accounting periods. By deferring these costs, a business can spread the expense over the useful life of the asset, matching the expense with the revenue it helps to generate.

必要経費 (hitsuyo keihi) refers to the costs that are essential and directly related to earning income in a business or profession. These expenses can be deducted from gross income to determine taxable income, thereby reducing the overall tax liability.

Examples of necessary business expenses include rent for business premises, salaries, utility bills, office supplies, and other operational costs. Proper documentation and justification are required to claim these expenses as deductions on tax returns.

法定相続人 (hotei sozokunin) refers to individuals who are entitled by law to inherit the estate of a deceased person, in other words, the statutory heir. In Japan, the Civil Code defines who qualifies as a statutory heir, typically including the spouse, children, parents, and other relatives of the deceased. The specific order and proportion of inheritance are also determined by law. Statutory heirs have a legal right to claim their share of the estate in accordance with these regulations.

還付金 (kanpukin) typically refers to money returned to an individual or entity, often from the government or a financial institution, usually because of an overpayment or correction of an error. In the context of taxes, kanpukin refers to a tax refund that occurs when the amount of tax paid exceeds the actual tax liability, resulting in a reimbursement to the taxpayer.