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.

租税 (sōzei) refers to taxes or taxation in Japan. This term encompasses all types of taxes imposed by the government on individuals and businesses, including income tax, corporate tax, consumption tax, property tax, and other local and national taxes.

The primary purpose of sozei is to generate revenue for the government to fund public services and infrastructure, such as education, healthcare, transportation, and social welfare programs. The tax system in Japan is governed by laws and regulations that outline the obligations of taxpayers and the procedures for tax collection and enforcement.

確定申告書B (kakutei shinkokusho B) is a specific form used in Japan for filing an income tax return. This form is designed for individuals who have income from various sources beyond just salary, such as business income, rental income, or investment income.

Individuals who typically use kakutei shinkokusho B include self-employed individuals, freelancers, business owners, and those with multiple sources of income. The form requires detailed reporting of all income, deductions, and credits to accurately calculate the tax owed.

Filing a kakutei shinkokusho B form involves providing information about various types of income, expenses related to generating that income, and any applicable deductions or exemptions. The purpose of this form is to ensure that taxpayers accurately report their income and pay the appropriate amount of taxes.

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.

租税公課 (sozei kōka) refers to taxes and public dues in Japanese. This term encompasses all types of taxes and mandatory public contributions that businesses and individuals are required to pay. It includes various forms of taxation such as income tax, corporate tax, consumption tax, property tax, and social insurance premiums.

In accounting, sozei koka is used to categorize these tax payments and public dues as expenses. These expenses are recorded in financial statements to accurately reflect the costs associated with fulfilling tax obligations. Managing and accounting for sozei koka is essential for compliance with tax laws and for maintaining transparent and accurate financial records.

徴収 (chōshū) refers to the act of collecting or levying taxes, fees, or other payments. This term is commonly used in the context of government and public administration in Japan.

For example, when the government collects income tax from individuals or businesses, this process is called choshu. It can also apply to the collection of social insurance premiums, utility bills, or any mandatory fees. The entity responsible for collection ensures that the payments are made according to the relevant laws and regulations, and it may involve various methods such as direct billing, automatic deductions, or other forms of payment collection.