Japanese Business Glossary

納付書 (nofusho) refers to a payment slip or tax payment form in Japan. This document is used by taxpayers to make various types of tax payments, such as income tax, consumption tax, and social insurance contributions. The nofusho includes important details such as the taxpayer's name, address, tax identification number, the amount due, and the payment deadline.

Taxpayers obtain payment slips from tax authorities, either in person, by mail, or online, depending on the type of tax and the taxpayer's preference. Once completed, the nofusho can be submitted along with the payment at designated financial institutions, such as banks or post offices. Some taxes can also be paid online through electronic payment systems.

帳簿 (chobo) refers to accounting books or financial records in Japan. These are essential documents that businesses and self-employed individuals use to record their financial transactions, including income, expenses, assets, and liabilities. Keeping accurate and comprehensive 帳簿 is crucial for managing finances, preparing financial statements, and complying with tax regulations.

In Japan, maintaining proper accounting books is especially important for those who file a blue return, as it allows them to take advantage of various tax deductions and benefits. These records can be maintained in physical ledgers or through accounting software. Properly kept chobo help ensure transparency, accuracy, and accountability in financial reporting, and they are often reviewed by tax authorities during audits or assessments.

青色申告控除 (aoiro shinkoku kojo) refers to the blue return deduction in Japan. This is a tax deduction available to self-employed individuals, sole proprietors, and small business owners who choose to file a blue return, which is a more detailed and thorough tax return compared to the standard white return.

By filing a blue return, taxpayers can take advantage of various deductions and tax credits, ultimately reducing their taxable income. To qualify for the blue return deduction, taxpayers must keep accurate and comprehensive financial records and submit these records along with their tax return. The benefits of filing a blue return include higher deduction amounts and access to other tax incentives.

The blue return system encourages better bookkeeping practices and compliance with tax regulations by rewarding those who maintain detailed financial records.

源泉税 (gensenzei) refers to withholding tax in Japan. This type of tax is deducted at the source of income, meaning that it is withheld from payments such as salaries, dividends, and interest before the recipient receives the funds. Employers or payers are responsible for calculating and withholding this tax from their employees' or payees' earnings and then remitting it to the tax authorities on their behalf. The purpose of 源泉税 is to ensure the timely collection of taxes and reduce the burden of lump-sum tax payments for individuals. The withheld tax can be credited against the individual's final tax liability, and any excess amount withheld may be refunded after filing a tax return. This system helps streamline tax collection and compliance for both taxpayers and the government.

特別障害者 (tokubetsu shogaisha) refers to individuals with severe disabilities in Japan. This designation is used to identify people who have significant physical or mental impairments that greatly affect their daily lives and ability to work. The classification of tokubetsu shogaisha is part of Japan's welfare system, designed to provide additional support and benefits to those with the most substantial needs. This support can include financial assistance, specialized medical care, and various social services aimed at improving their quality of life. Recognizing someone as an individual with severe disabilities ensures they receive the necessary accommodations and resources to help them lead a more comfortable and dignified life.

個人事業主 (kojin jigyo-nushi) refers to a sole proprietor or self-employed individual in Japan. This type of business structure is where an individual owns and operates their own business without forming a separate legal entity, like a corporation. As a sole proprietor, the individual has complete control over their business decisions and is personally responsible for all liabilities and debts incurred by the business. This also means that the income generated from the business is considered personal income and is subject to personal income tax. Many freelancers, small business owners, and independent contractors in Japan operate as kojin jigyo nushi. This structure is relatively simple to set up and manage, making it a popular choice for those starting small-scale businesses. However, it also means that the owner is directly exposed to financial risks, as there is no distinction between personal and business assets.