Japanese Business Glossary

源泉徴収税額 (gensen choshū zeigaku) is the withholding tax amount. This term refers to the amount of tax that is withheld at the source of income, such as from an employee's salary, wages, or payments to contractors. The employer or payer deducts this tax amount from the payment and remits it directly to the tax authorities on behalf of the employee or payee. This system ensures that taxes are collected regularly throughout the year and helps to prevent tax evasion. The withheld tax is then credited against the total tax liability of the individual or entity when they file their annual tax return.

寡婦控除 (kafu kojo) refers to the widow's deduction. This is a tax deduction available in Japan for women who meet certain conditions, such as being widowed or divorced. The deduction is designed to provide financial relief to widows by reducing their taxable income, which in turn lowers their overall tax liability.

To qualify for the widow deduction, specific criteria must be met, such as not having remarried and having a dependent child or earning below a certain income threshold. There is also a special deduction for widows who are supporting a child. The amount of the deduction can vary based on these conditions.

所得控除 (shotoku kojo) translates to income deduction. This term refers to the amounts that can be subtracted from an individual's gross income to determine their taxable income. Income deductions are used to lower the overall tax liability and may include deductions for dependents, medical expenses, insurance premiums, and various other qualifying expenses. By applying these deductions, taxpayers can reduce the portion of their income that is subject to tax.

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.

青色申告控除 (aoiro shinkoku kojo) refers to the blue return deduction in Japan. This is a tax deduction available to self-employed individuals, sole proprietors, and small business owners who choose to file a blue return, which is a more detailed and thorough tax return compared to the standard white return.

By filing a blue return, taxpayers can take advantage of various deductions and tax credits, ultimately reducing their taxable income. To qualify for the blue return deduction, taxpayers must keep accurate and comprehensive financial records and submit these records along with their tax return. The benefits of filing a blue return include higher deduction amounts and access to other tax incentives.

The blue return system encourages better bookkeeping practices and compliance with tax regulations by rewarding those who maintain detailed financial records.

保険料控除証明書 (hokenryou koujo shoumeisho) is a certificate of insurance premium deduction in Japan. This document is issued by insurance companies to policyholders, confirming the amount of premiums paid within a specific period. It serves as proof for individuals when they file their income tax returns, allowing them to claim deductions for the premiums paid towards life, medical, or other qualifying insurance policies. The certificate helps reduce the taxable income, thereby lowering the overall tax liability. Understanding and utilizing the hokenryou koujo shoumeisho is crucial for taxpayers to ensure they receive the appropriate tax benefits for their insurance contributions.