Japanese Business Glossary

控除証明書 (kojo shomeisho) refers to a tax deduction certificate in Japan. This document serves as official proof that an individual is eligible for certain tax deductions. It is typically issued by institutions such as insurance companies, employers, or other relevant organizations and is used to substantiate claims for deductions when filing income tax returns.

Examples of kojo shomeisho include certificates for life insurance premiums, medical expenses, social insurance contributions, mortgage interest payments, and donations to approved charities. Each certificate provides detailed information about the amount paid and the period covered, which helps taxpayers accurately report their eligible deductions.

Having a kojo shomeisho is essential for reducing taxable income and lowering the overall tax burden. When filing tax returns, taxpayers must attach these certificates to demonstrate their eligibility for deductions. Proper management and retention of these certificates ensure compliance with tax regulations and maximize potential tax savings.

Accurate documentation and timely submission of kojo shomeisho are crucial for a smooth tax filing process and for avoiding issues with tax authorities.

ワンストップ特例制度 (one-stop tokurei seido) refers to the One-Stop Special Exception System in Japan. This system simplifies the tax deduction process for individuals who make donations under the Furusato Nozei (hometown tax donation) program.

Under this system, taxpayers who donate to local governments can apply for tax deductions without having to file a final income tax return. Instead, they submit a one-stop application form to the local government receiving the donation, which then handles the paperwork to ensure the donor's residence municipality applies the tax deduction directly.

This system is especially useful for salaried workers who typically do not file annual tax returns, making it easier for them to benefit from the Furusato Nozei program without additional administrative burdens.

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.

16歳以上19歳未満の扶養親族 (jūroku-sai ijō jūkyū-sai miman no fuyō shinzoku) refers to dependent relatives who are between 16 and 19 years old in Japan. This term is used in the context of tax deductions and allowances.

In Japan, taxpayers can claim deductions for dependents, which reduce their taxable income and ultimately the amount of tax owed. Dependents in this age range are typically high school students who are financially supported by the taxpayer. The specific rules and amounts for deductions can vary, but the inclusion of such dependents helps lessen the financial burden on families supporting older children who are not yet financially independent.

損金 (sonkin) refers to deductible expenses in Japan. These are the costs and expenses that a business can deduct from its taxable income when calculating its corporate income tax. By deducting these expenses, the business reduces its overall taxable income, thereby lowering its tax liability.

Deductible expenses includes various types of business expenses, such as operating costs, salaries, rent, utilities, depreciation of assets, and other expenditures that are necessary for the company's operations. These expenses must be ordinary and necessary for the business and properly documented to be eligible for deduction.

Understanding sonkin is crucial for accurate financial management and tax compliance. Properly identifying and recording deductible expenses helps businesses optimize their tax obligations and maintain compliance with tax regulations.

保険料控除 (hokenryou koujo) refers to insurance premium deductions in Japan. This tax deduction allows individuals to reduce their taxable income by the amount paid in insurance premiums. Eligible premiums typically include those for life insurance, medical insurance, and other specified types of insurance. By claiming hokenryo koujo, taxpayers can lower their overall tax liability, making it a beneficial aspect of personal financial management. To claim this deduction, individuals must provide documentation, such as the certificate of insurance premium deduction, which verifies the premiums paid.