Japanese Business Glossary

会議費 (kaigihi) is a Japanese term that translates to "meeting expenses" or "conference expenses" in English. It refers to the costs incurred for organizing and conducting meetings, conferences, or business gatherings. These expenses can include various items such as venue rental, catering, travel expenses for participants, equipment rental (like projectors and audio systems), and any other costs directly associated with holding a meeting or conference.

In a business context, kaigihi is an important category of expenditure that companies track for budgeting and accounting purposes. Proper management of meeting expenses ensures that meetings are conducted efficiently and cost-effectively, supporting the overall operational and financial health of the organization.

節税 (setsuzei) refers to tax-saving strategies or tax planning in Japan. It involves legally minimizing the amount of taxes owed by making use of various deductions, credits, allowances, and exemptions provided under tax laws. Individuals and businesses engage in setsuzei to reduce their tax liability and retain more of their income or profits. Common methods include maximizing allowable deductions, investing in tax-advantaged accounts, taking advantage of tax credits, and structuring business operations efficiently. Effective setsuzei requires a good understanding of tax regulations and careful financial planning. It is an important aspect of financial management, helping taxpayers optimize their finances and achieve greater economic efficiency.

年間所得 (nenkan shotoku) refers to the annual income or yearly earnings of an individual or entity in Japan. This term encompasses all forms of income received over the course of a year, including salaries, wages, bonuses, rental income, investment returns, and any other sources of revenue. Calculating nenkan shotoku is essential for various financial purposes, such as tax filing, loan applications, and financial planning. It determines the amount of taxes owed to the government and eligibility for certain benefits or financial products.

住民税 (juminzei) is the resident tax in Japan. It is a local tax levied on individuals who reside in Japan and is paid to the municipal and prefectural governments. The Resident Tax is calculated based on your previous year's income and consists of two components: Prefectural Resident Tax, which goes to the prefectural government, and Municipal Resident Tax, which goes to the city, town, or village where you live.

The tax rate is typically around 10% of your income. Resident Tax is usually paid in four installments throughout the year. For employees, the tax is often deducted directly from their salary by their employer.

If you have more specific questions about Resident Tax, such as how to calculate it or payment procedures, please let me know.

退職金制度 (taishokukin seido) refers to the retirement allowance system or retirement benefit system in Japan. This system provides employees with a lump-sum payment or pension upon their retirement from a company. The retirement allowance is a form of severance pay intended to support employees financially as they transition out of the workforce.

Employees typically become eligible for retirement allowances after a certain period of continuous service with the company. The amount of the retirement allowance often increases with the length of service. The retirement allowance can be calculated based on various factors such as the employee’s final salary, years of service, and the company's specific retirement policy. Some companies may use a point-based system to determine the payment amount.

The retirement allowance can be provided as a lump-sum payment, an annuity (pension), or a combination of both. The choice of payment type may depend on the company’s policy and the employee's preference. Retirement allowances are subject to favorable tax treatment in Japan, with certain portions of the payment being tax-exempt, depending on the employee’s years of service and the total amount received.

Each company can establish its own retirement allowance system, and the specifics can vary widely. It is essential for employees to understand their company’s policy to know what they are entitled to upon retirement. Understanding the taishokukin seido is crucial for both employers and employees in Japan, as it affects financial planning for retirement and the overall employment package.

事業税 (jigyozei) is a business tax in Japan. It is a local tax imposed on the income generated from business activities within a prefecture. The tax is levied on corporations and sole proprietors.

The tax rate varies depending on the type of business and the location. For corporations, the business tax is calculated based on their income, while for individual business owners, it is based on their income from business activities.

Business tax is an important consideration for businesses operating in Japan, as it affects their overall tax burden. Understanding the specific rates and regulations in the prefecture where the business is located is crucial for accurate tax planning and compliance.