Japanese Business Glossary

一般財団法人 (ippan zaidan hojin) refers to a "General Incorporated Foundation" in Japan. This type of organization is a non-profit entity that operates independently from the government. It is established to pursue various public interest activities such as education, culture, science, and welfare. A General Incorporated Foundation is different from a company as it does not aim to generate profit for distribution to shareholders. Instead, any surplus funds are reinvested into the foundation's activities. To establish an General Incorporated Foundation, specific legal procedures must be followed, including drafting a charter and registering with the relevant authorities. This structure allows for greater flexibility in managing and funding public interest projects while maintaining transparency and accountability.

白色申告 (shiroiro shinkoku) refers to "white tax return" in Japan. It is a simplified tax filing system for individuals who are self-employed or have other non-salaried income. Unlike the blue tax return (青色申告), which offers more benefits and requires detailed bookkeeping, the white tax return involves less stringent record-keeping and fewer reporting requirements. This system is generally easier for small business owners and freelancers to manage, but it offers fewer tax deductions and benefits compared to the blue tax return. Filing a shiroiro shinkoku involves reporting income and expenses to the tax authorities, ensuring that all taxable income is accurately declared.

会計基準 (kaikei kijun) refers to accounting standards in Japan. These standards are a set of principles and guidelines that govern the financial reporting and accounting practices of companies. The primary objective is to ensure consistency, reliability, and transparency in financial statements, making them useful for investors, regulators, and other stakeholders.

In Japan, the accounting standards are issued and managed by various organizations, including the Financial Services Agency (FSA) and the Accounting Standards Board of Japan (ASBJ). These standards cover various aspects of financial reporting, such as revenue recognition, expense reporting, asset and liability valuation, and disclosure requirements.

Japanese companies must comply with these standards to ensure their financial statements accurately reflect their financial position and performance. This compliance is crucial for maintaining investor confidence and fulfilling regulatory requirements.

借用書 (shakuyousho) is a loan agreement or promissory note in Japan. It is a written document that records the details of a loan transaction between a lender and a borrower. This document typically includes information such as the amount of money borrowed, the interest rate, repayment terms, and the due date for repayment.

The purpose of a shakuyousho is to provide a clear and legally binding record of the loan agreement to protect both parties' interests. It helps to avoid misunderstandings or disputes by clearly outlining the terms and conditions agreed upon by the lender and the borrower.

In addition to financial loans, shakuyousho can also be used for other types of borrowing, such as borrowing goods or equipment. The document serves as proof of the borrower's obligation to return the borrowed items or repay the loan according to the specified terms.

差し引き保険料 (sashihiki hokenryou) refers to the net insurance premium. This is the amount of insurance premium that remains after deductions such as discounts, subsidies, or other adjustments have been applied to the gross premium.

For instance, if you purchase an insurance policy and the initial premium is ¥50,000, but you receive a discount of ¥5,000, the net insurance premium would be ¥45,000. This is the actual amount you need to pay for the insurance coverage after accounting for any applicable deductions. The term ensures clarity in the final amount payable by the policyholder.

ワンストップ特例制度 (one-stop tokurei seido) refers to the One-Stop Special Exception System in Japan. This system simplifies the tax deduction process for individuals who make donations under the Furusato Nozei (hometown tax donation) program.

Under this system, taxpayers who donate to local governments can apply for tax deductions without having to file a final income tax return. Instead, they submit a one-stop application form to the local government receiving the donation, which then handles the paperwork to ensure the donor's residence municipality applies the tax deduction directly.

This system is especially useful for salaried workers who typically do not file annual tax returns, making it easier for them to benefit from the Furusato Nozei program without additional administrative burdens.