Japanese Business Glossary

開業届 (kaigyo todoke) is the "Notification of Business Opening" in Japan. This is a formal declaration submitted to the tax office when starting a business. It is a necessary step for anyone who wishes to operate as a sole proprietor or start a company in Japan.

Submitting the kaigyo todoke involves providing details about the business, such as the name, address, type of business, and the start date of operations. This notification is essential for tax purposes and must be filed within one month of starting the business. Failure to submit the business opening form can result in difficulties with tax filings and potential penalties.

This form is available at the local tax office or can be downloaded from the National Tax Agency's website. After submission, the business is officially recognized by the tax authorities, allowing the proprietor to fulfill their tax obligations properly.

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.

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.

開示請求 (kaiji seikyū) refers to a formal request made by an individual or entity to obtain access to specific information or documents held by an organization, such as a government agency or a company.

The purpose of a disclosure request can vary, including gaining access to personal data, business records, or other types of information that are legally required to be disclosed. The process and requirements for submitting a disclosure request are typically governed by relevant laws and regulations, such as freedom of information laws or privacy protection laws.

必要経費 (hitsuyo keihi) refers to the costs that are essential and directly related to earning income in a business or profession. These expenses can be deducted from gross income to determine taxable income, thereby reducing the overall tax liability.

Examples of necessary business expenses include rent for business premises, salaries, utility bills, office supplies, and other operational costs. Proper documentation and justification are required to claim these expenses as deductions on tax returns.