Japanese Business Glossary

譲渡所得税 (joto shotokuzei) is the capital gains tax in Japan. It is a tax imposed on the profit earned from the sale or transfer of certain assets. This tax applies to various types of property, including real estate, stocks, bonds, and other financial instruments.

The capital gains tax rate can vary depending on the type of asset and the length of time it was held. For example, real estate sold within a short period typically incurs a higher tax rate than property held for a longer duration. The tax is calculated based on the difference between the acquisition cost and the selling price of the asset.

Taxpayers are required to report capital gains on their annual tax returns. There are certain exemptions and deductions available that can reduce the taxable amount, depending on specific conditions and the type of asset involved.

It is important to comply with the regulations and accurately report capital gains to avoid penalties. Seeking advice from a tax professional or accountant can help ensure proper handling of capital gains tax obligations.

年調過不足税額 (nenchou kafusoku zeigaku) refers to the annual tax adjustment amount for withholding tax in Japan. This adjustment occurs at the end of the year when an employer reconciles the total amount of tax withheld from an employee's salary throughout the year with the actual tax liability of the employee.

If there is an overpayment (過 = ka), the excess amount is refunded to the employee. If there is an underpayment (不足 = fusoku), the employee must pay the additional amount. This reconciliation process ensures that the correct amount of tax has been paid over the course of the year, considering any changes in income, deductions, or tax credits.

The process involves comparing the cumulative amount of withholding tax deducted from the employee's salary with the employee's total tax liability for the year. The result of this comparison determines whether there is a tax overpayment or underpayment, which then needs to be adjusted accordingly.

ひとり親 (hitori-oya), single parent, someone who is raising their child or children alone without the support of a partner. This term can apply to either a single mother or a single father.

In Japan, single parents often face unique challenges, including financial difficulties and social stigma. However, there are various support systems and benefits available to assist them, such as child-rearing allowances, tax benefits, and access to social services. Understanding the specific rights and benefits for single parents can help them navigate these challenges more effectively.

修繕費 (shūzenhi), repair expenses or maintenance costs, refers to the costs incurred for repairing or maintaining property, equipment, or other assets. These expenses are typically categorized as operating expenses for businesses and are necessary for keeping assets in good working condition. Repair expenses can include costs for fixing damages or malfunctions, regular maintenance fees to prevent future issues, and replacement parts and labor costs associated with repairs. In accounting, shuzenhi is important for tracking the costs associated with maintaining the operational efficiency of business assets. These expenses are often deductible for tax purposes, depending on specific regulations and the nature of the expenses.

贈与 (zoyo), gift or donation, involves the transfer of property or assets from one person to another without receiving anything in return.

In legal and financial contexts, zoyo can have specific implications, especially regarding taxes. For instance, in Japan, there is a gift tax (贈与税 = zoyozei) that applies to the recipient of the gift if the value exceeds a certain threshold.

Understanding what constitutes a gift or a donation is important for estate planning, charitable donations, and transferring assets within families. It is advisable to consult with a legal or financial expert to navigate the regulations and potential tax liabilities associated with gifts.

繰延資産 (kurinobe shisan) refers to costs that have been incurred but are not immediately expensed on the income statement, i.e., deferred assets. Instead, these costs are capitalized and amortized over a specific period of time.

Deferred assets typically include expenditures such as startup costs, development expenses, and large-scale marketing campaigns that provide benefits over multiple accounting periods. By deferring these costs, a business can spread the expense over the useful life of the asset, matching the expense with the revenue it helps to generate.