Japanese Business Glossary

勤労学生 (kinro gakusei) refers to a working student in Japan. This term describes students who are engaged in part-time or full-time employment while pursuing their studies. The concept of kinro gakusei is significant in the context of tax regulations, as these students may be eligible for certain tax benefits.

In Japan, working students can apply for the 勤労学生控除 (kinro gakusei kojo), which is a tax deduction designed to reduce their taxable income. To qualify for this deduction, the student must meet specific criteria, such as being enrolled in an educational institution, earning a primary income from work, and having an annual income below a certain threshold. Additionally, the student should not be dependent on their parents' tax returns if they claim this deduction.

The kinro gakusei kojo aims to alleviate the financial burden on students who work to support their education and living expenses. By reducing their taxable income, the deduction allows these students to retain more of their earnings, making it easier to manage their finances while continuing their studies.

Properly claiming the working student deduction involves submitting the necessary documentation, such as proof of enrollment and employment, when filing annual tax returns. This process ensures that eligible students receive the appropriate tax relief, helping them balance their academic and work commitments.

扶養 (fuyo) refers to "dependents" in Japan. This term is commonly used in the context of tax and social security to describe individuals who are financially supported by someone else, typically a family member. The concept of fuyo is important for determining tax deductions and benefits for the person providing the support.

In the Japanese tax system, taxpayers can claim deductions for dependents they support, which reduces their taxable income and, consequently, their tax liability. Dependents can include children, spouses, elderly parents, and other relatives who rely on the taxpayer for financial support. To qualify as a dependent, the individual must meet certain criteria, such as having a limited income and living within the same household or being financially supported by the taxpayer.

Claiming dependents not only provides tax benefits but also affects social security and health insurance premiums. For instance, family members who qualify as dependents may receive health insurance coverage under the primary policyholder's plan without additional costs.

Understanding Japan's dependent system is essential for taxpayers as it can significantly impact their financial planning and tax obligations. It ensures that those who provide financial support to their family members receive appropriate tax relief and social benefits.