Japanese Business Glossary

損金算入 (sonkin sannyū) refers to the inclusion of deductible expenses in Japan. This term is used in the context of tax accounting and refers to the process of recognizing certain expenses as tax-deductible when calculating taxable income for a business.

When an expense is categorized as sonkin sannyu, it means that the cost can be subtracted from the company's gross income to determine its taxable income. This reduces the overall tax liability of the business. Examples of such deductible expenses include operating costs, salaries, rent, utilities, and depreciation of assets.

Accurate identification and documentation of sonkin sannyu expenses are crucial for effective tax planning and compliance with tax regulations. Properly managing these deductions helps businesses optimize their tax obligations and maintain accurate financial records.

残存価額 (zanzon kagaku) refers to the residual value or salvage value of an asset. It is the estimated amount that an asset is expected to be worth at the end of its useful life, after accounting for depreciation. This value is important in both accounting and financial planning as it helps in calculating depreciation expenses and in assessing the future worth of assets.

In practical terms, when a company purchases an asset, it estimates how much that asset can be sold for or how much value it will have left after it has been used over its expected lifespan. The zanzon kagaku is used in various accounting methods to determine the annual depreciation expense, which in turn affects the company's financial statements and tax calculations.

甲欄 (kōran) and 乙欄 (otsuran) refer to specific sections or columns on Japanese tax forms, particularly those related to payroll and income tax statements. Koran is used for employees who are working full-time and are considered primary income earners. Their employer is responsible for withholding and paying income tax on their behalf. The tax withheld is based on the salary and other earnings provided by the employer. Employees listed under koran typically do not need to file a separate tax return if their only source of income is from their employment.

Otsuran is used for employees who have multiple employers or sources of income, such as part-time workers or freelancers. The tax withheld in this column is often based on a different set of criteria, and these employees are typically required to file an annual tax return (確定申告 = Kakutei Shinkoku) to account for all their income sources and ensure the correct amount of tax is paid. The distinction between koran and otsuran helps the tax authorities and employers manage the different withholding tax obligations for employees with varying employment and income situations.

元入金 (motoirikin) refers to the initial capital or principal amount invested in a business or financial venture. It represents the original amount of money that the owner or shareholders put into the business when it was established. This initial capital is used to fund the startup costs, purchase assets, and provide working capital for the company's operations.

In accounting, motoirikin is recorded in the capital or equity section of the balance sheet, reflecting the owner's or shareholders' investment in the business. It is a critical component for determining the financial health and equity structure of a company. Over time, the value of the initial capital may change due to business profits, losses, additional investments, or withdrawals.

計上 (keijō) refers to the act of recording or accounting for an item or transaction in financial statements or records. This term is commonly used in the context of business and accounting in Japan.

When a company records (keijo) a particular expense, revenue, asset, or liability, it means that the item has been officially entered into the company's books. This process ensures that all financial activities are accurately tracked and reported. For example, if a company incurs a business expense, it must record that expense to reflect it in its financial statements, affecting the overall financial position and performance of the company. Proper keijo is crucial for maintaining transparent, accurate, and compliant financial records.

時価 (jika) refers to the current market value or fair market value of an asset. This term is used in accounting, finance, and real estate to represent the price at which an asset would trade in a competitive auction setting.

Jika is the value that buyers are willing to pay and sellers are willing to accept in an open market. It reflects the most accurate and up-to-date valuation of an asset, considering supply and demand dynamics, economic conditions, and other relevant factors. In financial statements, jika can be used for valuing investments, real estate properties, or other assets to ensure they are accurately represented according to their true market worth.