Japanese Business Glossary

加熱式タバコ (kanetsu-shiki tabako) refers to heated tobacco products (HTPs) in Japanese. These are a type of tobacco product that heats tobacco instead of burning it, producing a vapor containing nicotine and other chemicals, which is then inhaled by the user. Unlike traditional cigarettes, which combust tobacco at high temperatures, kanetsu-shiki tabacco heats the tobacco at lower temperatures, typically between 250°C and 350°C, to generate an aerosol.

Heated tobacco products are marketed as a potentially less harmful alternative to conventional smoking because they produce fewer harmful substances compared to the combustion process. However, they still contain nicotine and other potentially harmful chemicals, and their long-term health effects are still being studied. Popular brands of kanetsu-shiki tabacco include IQOS by Philip Morris, Glo by British American Tobacco, and Ploom by Japan Tobacco. These products have gained popularity in Japan and other countries as smokers look for alternatives to traditional cigarettes.

所得証明書 (shotoku shōmeisho) refers to an income certificate in Japanese. It is an official document issued by municipal offices that provides proof of an individual's income for a specific period, usually the previous year. This certificate includes details such as the individual's total income, tax deductions, and taxable income.

A shotoku shomeisho is often required for various administrative and financial purposes, such as applying for loans, scholarships, public housing, social welfare programs, or when proving eligibility for certain services and benefits. To obtain a shotoku shomeisho, an individual typically needs to apply at their local city hall or municipal office, providing necessary identification and information.

マル優 (maruyu) refers to a tax exemption system in Japan for small savings. This system allows individuals to receive tax-free interest on certain deposits and investments up to a specified limit. The full name is 少額貯蓄非課税制度 (shōgaku chochiku hikazei seido), which translates to small savings non-taxable system.

Under the maruyu system, eligible individuals, such as the elderly, disabled, or widows, can register their savings accounts, fixed-term deposits, and other qualifying financial products to be exempt from taxes on the interest earned. The tax-free limit is typically set per individual, and any interest earned beyond this limit is subject to normal taxation. This system is designed to encourage savings among those who may have limited income.

売上原価 (uriage genka) refers to the cost of goods sold (COGS) in Japanese. This term represents the direct costs attributable to the production of the goods or services that a company sells during a specific period. It includes expenses such as the cost of raw materials, direct labor costs, and manufacturing overhead.

Calculating uriage genka is essential for determining a company's gross profit, which is the revenue from sales minus the COGS. The formula for calculating uriage genka is the beginning inventory plus purchases made during the period minus the ending inventory.

Understanding and accurately calculating the cost of goods sold is crucial for businesses to assess their profitability, set appropriate pricing strategies, and manage their production and inventory efficiently.

事務所 (jimusho) refers to an office or an administrative workplace in Japanese. It is a place where business, clerical, or professional activities are conducted. An office can serve various functions, including management, administration, communication, and coordination of work within an organization.

A jimusho is typically equipped with desks, computers, filing cabinets, and other office supplies necessary for carrying out administrative tasks. It can be found in various settings, such as corporate buildings, government agencies, schools, and other institutions.

仮払消費税 (karibarai shōhizei) refers to "prepaid consumption tax" or "temporary payment of consumption tax" in Japanese. It represents the consumption tax that a business pays when purchasing goods or services, which can later be offset against the consumption tax it collects from its customers.

In the Japanese tax system, businesses are required to pay consumption tax on their purchases (input tax) and collect consumption tax on their sales (output tax). At the end of the tax period, the business calculates the difference between the output tax collected and the input tax paid. If the output tax is greater, the business pays the difference to the tax authorities. If the input tax is greater, the business can receive a refund or carry the excess forward to the next tax period.

Karibarai shōhizei is thus an important concept for businesses as it directly affects their cash flow and tax liability.