Japanese Business Glossary

給与収入 (kyūyo shūnyū) refers to employment income or salary income in Japan. This is the total amount of money received by an individual from their employer as compensation for work performed. Kyūyo shūnyū includes not only the base salary but also various allowances, bonuses, overtime pay, and other forms of monetary compensation provided by the employer.

This type of income is subject to income tax, social insurance premiums, and other deductions as mandated by Japanese law. Employers typically withhold these taxes and contributions from the employee's salary and remit them to the tax authorities on the employee's behalf. The amount of tax withheld is based on the individual's income level and personal allowances.

Accurately reporting kyūyo shūnyū is essential for tax purposes, as it determines the amount of income tax owed by the individual. At the end of the fiscal year, employees receive a tax certificate (源泉徴収票 = gensenchoshūhyo) from their employer, summarizing their total earnings and the taxes withheld. This certificate is used when filing annual income tax returns to ensure proper tax compliance and to claim any potential tax refunds or additional payments. Proper management and reporting of 給与収入 are vital for maintaining financial transparency and legal compliance.

請負契約 (ukeoi keiyaku) refers to a contract for work or a contract for services in Japan. This type of agreement is commonly used in construction, manufacturing, and various service industries. Under ukeoi keiyaku, one party (the contractor) agrees to complete a specific project or provide certain services for another party (the client) in exchange for compensation.

The contract details the scope of work, the specifications, the timeframe for completion, and the payment terms. It may also include clauses related to quality standards, penalties for delays, and procedures for handling changes or unforeseen issues during the project.

This type of contract is legally binding, and both parties are obligated to fulfill their respective responsibilities as outlined in the agreement. The contractor must complete the work to the agreed-upon standards and within the specified timeframe, while the client must provide the necessary support and make payments as stipulated in the contract.

This type of contract helps ensure clarity and accountability, providing a clear framework for managing projects and services. Properly drafting and adhering to the terms of a 請負契約 is crucial for preventing disputes and ensuring the successful completion of the contracted work.

地方税 (chihozei) refers to local taxes in Japan. These taxes are levied by municipal and prefectural governments to fund various public services and infrastructure projects within their jurisdictions. Chihozei includes a variety of taxes such as residential tax, property tax, and business tax. Each type of local tax serves different purposes and is calculated based on specific criteria relevant to the taxpayer's circumstances.

Residential tax, for example, is imposed on individuals based on their income and place of residence. Property tax is levied on the ownership of land and buildings, and business tax is charged to companies based on their business activities and profits. The rates and regulations for these taxes can vary significantly between different municipalities and prefectures.

Chihozei is crucial for local governments as it provides the necessary funds to maintain and improve public services such as education, healthcare, transportation, and public safety. Residents and businesses are required to comply with local tax laws, ensuring timely payment to support their communities. Understanding and managing local tax obligations is essential for financial planning and compliance with Japanese tax regulations.

領収書 (ryoshūsho) refers to a receipt or proof of payment in Japan. This document is issued by a seller or service provider to a buyer to acknowledge that payment has been received for goods or services. A typical receipt in Japan includes details such as the date of the transaction, the amount paid, a description of the goods or services, the name and contact information of the seller, and the payment method used.

Ryoshusho is an important document for both businesses and individuals, serving as a record of expenses for accounting, tax reporting, and reimbursement purposes. For businesses, keeping accurate receipts helps ensure proper bookkeeping and can be used to claim deductions on business expenses. For individuals, especially those who are self-employed, these receipts are essential for tracking personal expenses and filing accurate tax returns.

It is important to request and retain receipts for all significant transactions to ensure compliance with tax regulations and to maintain an organized financial record.

控除対象扶養親族 (kojo taisho fuyo shinzoku) refers to dependent relatives eligible for tax deductions in Japan. These are family members whom a taxpayer supports financially and who meet certain criteria set by the Japanese tax authorities. By claiming these dependents, taxpayers can reduce their taxable income, thereby lowering their overall tax burden.

To qualify as a dependent relative, the dependent must typically reside in the same household as the taxpayer or be financially supported by them. They must also have an annual income below a specified threshold. Common examples include children, elderly parents, and sometimes siblings. Claiming such dependents on a tax return allows for various deductions, which can lead to significant tax savings for the taxpayer.

Maintaining accurate records and documentation is essential for claiming these deductions, as tax authorities may require proof of the dependent's eligibility during tax assessments.

特別障害者 (tokubetsu shogaisha) refers to individuals with severe disabilities in Japan. This designation is used to identify people who have significant physical or mental impairments that greatly affect their daily lives and ability to work. The classification of tokubetsu shogaisha is part of Japan's welfare system, designed to provide additional support and benefits to those with the most substantial needs. This support can include financial assistance, specialized medical care, and various social services aimed at improving their quality of life. Recognizing someone as an individual with severe disabilities ensures they receive the necessary accommodations and resources to help them lead a more comfortable and dignified life.