Japanese Business Glossary

差額ベッド代 (sagaku beddo dai) refers to the additional charge for a hospital room beyond the standard coverage provided by health insurance in Japan. When a patient opts for a more comfortable or private room, they incur this extra cost, which is not covered by insurance.

For example, if you choose to stay in a single room instead of a shared room, the difference in cost is your responsibility. This additional charge for a private or semi-private room, called the sagaku beddo dai must be paid out-of-pocket by the patient.

Importantly, this expense is not eligible for medical expense deductions (医療費控除) under Japanese tax law. Medical expense deductions typically cover essential medical treatments and services, but not optional upgrades such as private room charges

診療報酬 (shinryou houshuu) refers to the payment medical institutions receive for the services they provide. This system is regulated by the government and ensures that healthcare providers are compensated for their work according to standardized rates.

In Japan, the fee structure for medical services is periodically reviewed and revised. The Ministry of Health, Labour and Welfare sets these fees to maintain balance between medical costs and the quality of healthcare services. The fees are detailed in a document known as the 診療報酬点数表 (shinryou houshuu tensuu hyou), or the Medical Fee Schedule, which specifies the points assigned to various medical procedures and services. These points are then converted into yen based on a set conversion factor.

The use of the My Number card (マイナンバーカード) as a health insurance card, known as マイナ保険証 (Myna hokenshou), has also influenced the diagnostic fee structure. For instance, the fees for initial consultations can differ based on whether a My Number card is used, with the aim of encouraging its use by making it more cost-effective for patients​

配当 (haitou) refers to dividends, which are payments made by a corporation to its shareholders from its profits. These payments are typically distributed regularly, such as quarterly or annually, based on the number of shares owned.

Dividends can be categorized as interim dividends, which are paid before the company's annual general meeting and final financial statements, and final dividends, which are declared at the end of the fiscal year and approved by shareholders during the annual general meeting.

Payment methods for dividends include proportional distribution to different brokerage accounts, consolidation into a single registered bank account, collection via a dividend receipt at a financial institution, and individual stock designation where dividends are paid into different accounts for each stock.

Dividends are subject to income tax and resident tax, with the income tax rate for dividends at 15.315% and the resident tax rate at 5%.

注文書 (chuumonsho) is a purchase order document issued by a buyer to a seller, indicating the products, quantities, and agreed prices for goods or services the seller will provide. It serves as an official confirmation of the purchase and details the terms and conditions under which the transaction will occur.

The process typically starts with the buyer requesting a quote from the seller. Once both parties agree on the terms, the buyer issues the purchase order, which includes specifics like the order number, date, item descriptions, quantities, prices, delivery dates, payment terms, and any other relevant information. The purchase order is then sent to the seller, who will fulfill the order as specified.

In addition to purchase orders, several related documents play a role in the purchasing and order fulfillment process. These include an acknowledgment receipt issued by the seller to confirm receipt and acceptance of the purchase order, a receipt issued by the buyer to confirm receipt of goods or services, a delivery note accompanying the goods, an inspection receipt confirming the goods meet specified criteria, an invoice requesting payment, and a receipt acknowledging payment received.

Understanding these documents is crucial for maintaining proper business records and ensuring smooth transactions.

文書 (bunsho) in Japanese refers to a document or written material.

内税 (uchizei) refers to tax-inclusive pricing, meaning the price displayed already includes the consumption tax. In Japan, this is a common practice for consumer goods, where the final price a customer sees is what they pay at the register, with the consumption tax already factored in.

When businesses use uchizei pricing, they must calculate the consumption tax from the total sales price. For instance, if an item is priced at 1,100 yen with a 10% consumption tax rate, the actual pre-tax price of the item would be 1,000 yen, and the included tax would be 100 yen.

The introduction of the Invoice System (インボイス制度) on October 1, 2023, allows for two primary methods for calculating consumption tax: the 割戻し計算 (warimodoshi keisan) or the 積上げ計算 (tsumige keisan). The warimodoshi calculation involves calculating tax by applying a fixed percentage to the total tax-inclusive price, while the tsumige calculation involves summing the tax amounts item by item, as listed on the invoices.

For businesses, choosing the appropriate method for calculating and reporting consumption tax can affect their tax liability and compliance. Thus, it is recommended to consult with a tax professional to determine the best approach for your specific business situation.