Japanese Business Glossary

印紙税 (inshi zei), stamp tax, is a tax imposed on certain documents in Japan, such as contracts, receipts, and agreements. These documents are legally required to have revenue stamps affixed to them, serving as evidence that the tax has been paid. Documents subject to revenue stamps include various types of contracts like sales contracts for real estate and other high-value transactions, loan agreements, and receipts for payments over a certain amount. For example, receipts for transactions over 50,000 yen require a revenue stamp. The amount of the revenue stamp depends on the type and value of the document. For instance, the tax on a receipt for a payment of 100,000 yen is 200 yen.

There are exemptions where revenue stamps are not required, such as for non-commercial transactions, receipts for payments made by credit card, and electronic contracts, which do not require physical documentation.

扶養控除申告書 (fuyou koujo shinkokusho), Declaration of Dependent Deduction, officially known as the "給与所得者の扶養控除等（異動）申告書" (kyūyo shotokusha no fuyou koujo-to [ido] shinkokusho), is a document that employees in Japan submit to their employers for year-end tax adjustment purposes. This form is necessary for claiming income tax deductions related to dependent exemptions.

The form allows employees to declare their dependents, such as spouses, children, or other family members, who qualify for tax deductions. It includes details about each dependent, such as their relationship to the employee and their income levels. The main deductions that can be declared through this form include the spousal deduction (配偶者控除 = haiguusha koujo) and the dependent deduction (扶養控除= fuyou koujo).

The spousal deduction applies if the spouse's annual income is 1.03 million yen or less, and the taxpayer's income is below specific thresholds. The dependent deduction applies to dependents under certain conditions, such as age and income criteria, and can significantly reduce the employee's taxable income.

Employees typically fill out and submit this form during the year-end adjustment period (年末調整 = nenmatsu chousei), which occurs from October to January. Proper submission ensures accurate tax calculations and helps employees benefit from applicable tax reductions.

源泉徴収票 (gensen choshūhyo), withholding tax certificate, is issued by employers in Japan, detailing the amount of income earned and the taxes withheld from an employee's salary over a fiscal year. This document is crucial for both employees and tax authorities, as it serves multiple purposes including income verification and tax filings.

The withholding tax certificate contains several key pieces of information: the total amount of salary paid, the amount of income tax withheld, social insurance premiums deducted, and any applicable deductions such as for dependents or insurance premiums. This information helps employees verify their annual earnings and tax payments, ensuring that the correct amount of tax has been withheld and paid to the authorities.

Employees typically receive their gensen choshūhyo, withholding tax certificate, after the completion of year-end tax adjustments (年末調整 = nenmatsu chousei), which employers conduct to reconcile any discrepancies between the estimated tax withheld and the actual tax owed for the year. The document must be issued by January 31 of the following year. In cases where an employee changes jobs, they should receive a withholding tax certificate from each employer for the period they were employed during that year.

This certificate is also used when filing a final tax return (確定申告 = kakutei shinkoku), especially if additional deductions such as medical expenses or mortgage interest are to be claimed.

契約書 (keiyakusho) is a contract or written agreement between two or more parties in Japan. It formalizes the terms and conditions agreed upon by the involved parties, providing a clear reference for what has been mutually decided.

This document typically includes important details such as the obligations, rights, and responsibilities of each party, the duration of the agreement, and any specific conditions or clauses pertinent to the arrangement.

The purpose of a contract is to prevent misunderstandings and disputes by ensuring that all parties have a clear understanding of their commitments. It serves as a legal safeguard, providing evidence of the agreement and its terms in case of any disagreements or legal issues that may arise in the future.

所得税 減税 (shotokuzei genzei) refers to income tax reduction in Japan. It involves lowering the amount of income tax that individuals or businesses are required to pay to the government.

The purpose of an income tax reduction is to provide financial relief, stimulate economic activity, and encourage spending and investment. Various policies and measures can be implemented to achieve this, such as increasing tax deductions, introducing tax credits, or reducing tax rates.

Income tax reductions can benefit both individuals and businesses by increasing disposable income and reducing the financial burden, ultimately contributing to overall economic growth and stability.

雑所得 (zatsu shotoku) refers to miscellaneous income in Japan. It encompasses various types of income that do not fall under other specific categories like employment, business, or investment income. Examples of miscellaneous income include earnings from freelance work, royalties, occasional side jobs, and certain types of rental income.

This type of income is subject to taxation and must be reported when filing annual tax returns. Properly accounting for miscellaneous income is essential for compliance with Japanese tax laws, ensuring that individuals accurately report all sources of income and pay the appropriate taxes. Failing to declare miscellaneous income can result in penalties and legal issues.