Japanese Business Glossary

一時所得 (ichiji shotoku) refers to "occasional income" or "one-time income" in Japan. This type of income includes earnings that are not part of regular income from employment, business, or investments. Typical examples of occasional income are lottery winnings, prizes from contests or sweepstakes, insurance payouts that are not part of regular life insurance benefits, and non-recurring gifts or awards.

Occasional income is generally subject to a different tax treatment compared to regular income. In Japan, this type of income is calculated by taking the gross income from these sources, subtracting any necessary expenses related to earning that income, and then subtracting a deductible amount. The remaining amount is then subject to income tax, but only half of this amount is added to the taxpayer's total taxable income for the year.

It's important to note that this category is specifically for income that is sporadic and not related to regular work or business activities.

国税庁 (kokuzeicho) is the National Tax Agency of Japan. It is the government agency responsible for administering and enforcing tax laws in Japan. Here are the main aspects of the National Tax Agency:

The National Tax Agency oversees the collection of various national taxes, including income tax, corporate tax, inheritance tax, gift tax, and consumption tax. It ensures compliance with tax laws and regulations through audits and investigations. The agency provides taxpayer services, such as tax return processing, guidance on tax matters, and dispute resolution. It also publishes official data and information related to taxation, including the annual publication of land values (rosenka).

The National Tax Agency plays a crucial role in Japan's tax system, ensuring the efficient and fair collection of taxes to support public services and government operations.

有価証券 (yūka shoken) refers to "securities" in English. These are financial instruments that hold value and can be traded. They represent ownership, such as stocks, a creditor relationship, such as bonds, or rights to ownership, such as options.

Securities can be divided into various types, including equity securities, debt securities, and derivative securities. Equity securities include stocks, which represent ownership in a company and entitle the holder to a portion of the profits. Debt securities include bonds and debentures, which represent money borrowed by the issuer that must be repaid with interest. Derivative securities include options and futures, which derive their value from an underlying asset, such as a stock or commodity.

Securities are essential components of the financial market, providing a means for raising capital, investing, and transferring risk.

基礎控除申告書 (kiso kojo shinkokusho), basic deduction declaration form, refers to a document used in Japan for claiming the basic deduction when calculating personal income tax. This form is essential for employees and individuals who want to apply for the basic deduction, which reduces their taxable income.

The basic deduction is a standard amount that every taxpayer is entitled to deduct from their income. The purpose of this deduction is to lower the tax burden on individuals, ensuring that a portion of their income is not subject to tax.

Filing this form typically involves providing personal details, income information, and any other relevant financial data. This information is then used by the tax authorities to determine the correct amount of basic deduction and, consequently, the amount of income tax owed.

If you are an employee, your employer usually provides this form, and it should be submitted as part of your year-end tax adjustment (年末調整, nenmatsu chosei). For those who file their taxes independently, the form is submitted along with their tax return documents.

税理士法人 (zeirishi hojin) refers to a tax accountant corporation in Japan. This type of corporation is formed by certified tax accountants (税理士 = zeirishi) who are licensed to provide tax-related services. These services typically include preparing and filing tax returns, providing tax advice and planning, representing clients in tax audits and disputes with tax authorities, offering bookkeeping and accounting services, and assisting with corporate tax strategies and compliance.

Tax accounting corporations allows tax accountants to pool their resources and expertise, offering a wider range of services and serving more clients effectively. These corporations are regulated under Japanese law to ensure they maintain professional standards and ethical practices.

登録免許税 (toroku menkyo zei) is a registration and license tax in Japan. This tax is levied on the registration of certain legal documents and transactions. It is commonly encountered during the incorporation of companies, transfer of real estate, and other legal registrations that require official acknowledgment by the government.

The tax rate and amount depend on the type of registration and the value of the transaction or asset being registered. For instance, when incorporating a company, the tax is calculated based on the company's capital amount, with a minimum tax amount set by law.

Incorporation registration typically requires the payment of this tax as part of the process. It's important to include this cost when planning to start a business in Japan.