Japanese Business Glossary

保険料控除申告書 (hokenryo kojo shinkokusho) is the Insurance Premium Deduction Declaration Form. This form is used in Japan for declaring and claiming deductions for insurance premiums on your annual tax return. These deductions can apply to various types of insurance, such as life insurance, earthquake insurance, and private pension insurance.

By submitting this form, taxpayers can reduce their taxable income, thus lowering their overall tax liability. It is important to fill out the form accurately and provide the necessary documentation to support the claimed deductions. This form is typically submitted to the tax authorities or through your employer during the year-end adjustment process.

開業届 (kaigyo todoke) is the "Notification of Business Opening" in Japan. This is a formal declaration submitted to the tax office when starting a business. It is a necessary step for anyone who wishes to operate as a sole proprietor or start a company in Japan.

Submitting the kaigyo todoke involves providing details about the business, such as the name, address, type of business, and the start date of operations. This notification is essential for tax purposes and must be filed within one month of starting the business. Failure to submit the business opening form can result in difficulties with tax filings and potential penalties.

This form is available at the local tax office or can be downloaded from the National Tax Agency's website. After submission, the business is officially recognized by the tax authorities, allowing the proprietor to fulfill their tax obligations properly.

所得金額調整控除 (shotoku kingaku chosei kojo) refers to income adjustment deduction in the Japanese tax system. This deduction is designed to provide tax relief for individuals with specific income types or conditions that might result in a higher tax burden.

The income adjustment deduction can apply to various situations, such as income from multiple sources, where combining incomes may lead to a higher tax rate, and income fluctuations that might push a taxpayer into a higher tax bracket.

By applying this deduction, taxpayers can adjust their taxable income downward, potentially lowering their overall tax liability. The specific rules and amounts for this deduction can vary, so it is important to consult with a tax professional or refer to the latest tax guidelines to understand how to apply it properly.

譲渡所得税 (joto shotokuzei) is the capital gains tax in Japan. It is a tax imposed on the profit earned from the sale or transfer of certain assets. This tax applies to various types of property, including real estate, stocks, bonds, and other financial instruments.

The capital gains tax rate can vary depending on the type of asset and the length of time it was held. For example, real estate sold within a short period typically incurs a higher tax rate than property held for a longer duration. The tax is calculated based on the difference between the acquisition cost and the selling price of the asset.

Taxpayers are required to report capital gains on their annual tax returns. There are certain exemptions and deductions available that can reduce the taxable amount, depending on specific conditions and the type of asset involved.

It is important to comply with the regulations and accurately report capital gains to avoid penalties. Seeking advice from a tax professional or accountant can help ensure proper handling of capital gains tax obligations.

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.