Japanese Business Glossary

給与所得控除 (kyūyo shotoku kojo) refers to employment income deduction in Japan. This deduction is available to salaried employees in Japan and is automatically applied to their employment income. It is designed to account for work-related expenses and reduce the taxable income of employees.

The amount of the deduction is calculated based on the total amount of employment income, with higher incomes receiving higher deductions, though there are maximum limits. This system ensures that employees can offset part of their earnings against costs incurred in earning that income, thus lowering their overall tax liability.

保険料控除申告書 (hokenryo kojo shinkokusho) is the Insurance Premium Deduction Declaration Form. This form is used in Japan for declaring and claiming deductions for insurance premiums on your annual tax return. These deductions can apply to various types of insurance, such as life insurance, earthquake insurance, and private pension insurance.

By submitting this form, taxpayers can reduce their taxable income, thus lowering their overall tax liability. It is important to fill out the form accurately and provide the necessary documentation to support the claimed deductions. This form is typically submitted to the tax authorities or through your employer during the year-end adjustment process.

役務提供 (ekimutēkyo) means the provision of services in Japanese. This term is used in the context of business and legal transactions in Japan, where it describes the act of providing services to a client or customer. It encompasses a wide range of activities, including professional services, consulting, maintenance, repair, and other forms of non-tangible support or assistance that do not involve the sale of physical goods.

的確請求書 (tekikaku seikyūsho) means qualified invoice in Japanese. This type of invoice meets specific requirements set by the Japanese tax authorities, particularly under the new invoice system for the consumption tax (VAT) regime. A qualified invoice must include the name and registration number of the supplier, the date of the transaction, details of the goods or services provided, the total amount charged including the applicable consumption tax, and the amount of consumption tax separately stated. The qualified invoice system aims to improve the accuracy and transparency of tax reporting and ensure that businesses correctly account for and report consumption tax. Businesses must issue these qualified invoices to claim input tax credits on their consumption tax returns.

開業届 (kaigyo todoke) is the "Notification of Business Opening" in Japan. This is a formal declaration submitted to the tax office when starting a business. It is a necessary step for anyone who wishes to operate as a sole proprietor or start a company in Japan.

Submitting the kaigyo todoke involves providing details about the business, such as the name, address, type of business, and the start date of operations. This notification is essential for tax purposes and must be filed within one month of starting the business. Failure to submit the business opening form can result in difficulties with tax filings and potential penalties.

This form is available at the local tax office or can be downloaded from the National Tax Agency's website. After submission, the business is officially recognized by the tax authorities, allowing the proprietor to fulfill their tax obligations properly.

所得金額調整控除 (shotoku kingaku chosei kojo) refers to income adjustment deduction in the Japanese tax system. This deduction is designed to provide tax relief for individuals with specific income types or conditions that might result in a higher tax burden.

The income adjustment deduction can apply to various situations, such as income from multiple sources, where combining incomes may lead to a higher tax rate, and income fluctuations that might push a taxpayer into a higher tax bracket.

By applying this deduction, taxpayers can adjust their taxable income downward, potentially lowering their overall tax liability. The specific rules and amounts for this deduction can vary, so it is important to consult with a tax professional or refer to the latest tax guidelines to understand how to apply it properly.