Japanese Business Glossary

文書 (bunsho) in Japanese refers to a document or written material.

内税 (uchizei) refers to tax-inclusive pricing, meaning the price displayed already includes the consumption tax. In Japan, this is a common practice for consumer goods, where the final price a customer sees is what they pay at the register, with the consumption tax already factored in.

When businesses use uchizei pricing, they must calculate the consumption tax from the total sales price. For instance, if an item is priced at 1,100 yen with a 10% consumption tax rate, the actual pre-tax price of the item would be 1,000 yen, and the included tax would be 100 yen.

The introduction of the Invoice System (インボイス制度) on October 1, 2023, allows for two primary methods for calculating consumption tax: the 割戻し計算 (warimodoshi keisan) or the 積上げ計算 (tsumige keisan). The warimodoshi calculation involves calculating tax by applying a fixed percentage to the total tax-inclusive price, while the tsumige calculation involves summing the tax amounts item by item, as listed on the invoices.

For businesses, choosing the appropriate method for calculating and reporting consumption tax can affect their tax liability and compliance. Thus, it is recommended to consult with a tax professional to determine the best approach for your specific business situation.

遡及 (sokyuu) refers to retroactive actions or adjustments. In a business and payroll context, this term is commonly used when discussing retroactive payments or adjustments that need to be made to an employee's salary or benefits due to changes that should have been implemented in previous periods but were not.

For example, if an employee receives a pay raise that should have been effective from a certain date in the past, the company would need to make a retroactive adjustment to pay the difference for the intervening period. This retroactive payment would be calculated and added to a future paycheck. Such adjustments might be necessary for salary increases, changes in job status, or corrections of previous payroll errors.

When dealing with social insurance premiums, retroactive payments may also be required. If there was an error or delay in reporting an employee's correct salary, the company might need to adjust the social insurance contributions retroactively, paying any differences for past periods.

Handling retroactive adjustments correctly is essential for maintaining compliance with labor laws and ensuring accurate financial reporting. Companies must keep detailed records and follow the proper procedures to ensure all adjustments are accurately reflected in payroll and benefits calculations.

継子 (mamakko) refers to a stepchild, the child of one's spouse from a previous relationship. In official documents like family registers or tax forms, relationships such as stepchildren need to be clearly stated to accurately reflect family dynamics and ensure legal and tax obligations are met.

異議申し立て (igi moushitate) refers to an objection or appeal against a decision or action, particularly in the context of administrative or legal matters. In Japan, if a taxpayer disagrees with a decision made by the tax office, such as a correction or additional tax assessment, they can file an objection.

This process typically involves submitting an objection letter to the relevant tax office within two months of becoming aware of the decision. If the taxpayer remains dissatisfied with the outcome of the objection, they can further appeal to the National Tax Tribunal within one month of the objection decision. In some cases, it is possible to bypass the initial objection and appeal directly to the National Tax Tribunal​​.

請求書発行 (seikyuu sho hakko) refers to the process of issuing invoices for goods or services provided. An invoice is a crucial document in business transactions, detailing the amount owed by the buyer to the seller and ensuring proper financial management.

When creating an invoice, it should include essential information such as the recipient's company name or individual name with the appropriate honorifics, the sender's company or individual details such as name, address, and contact information, the date the invoice is issued which can affect the recipient's accounting period, and a unique identifier for managing and tracking invoices. The invoice should also contain a detailed description of goods or services provided, including quantity, unit price, and total amount. If applicable, the amount of withholding tax should be indicated. Additionally, the invoice must include bank account details for payment, the payment due date, and any additional information or terms related to the payment.

Issuing invoices electronically can streamline the process, reduce errors, and ensure compliance with tax regulations, such as the new Japanese invoice system (インボイス制度) which mandates electronic storage of invoices​