Japanese Business Glossary

課税売上高 (kazei uriage-daka) translates to taxable sales or taxable turnover in English. This term refers to the total amount of sales or revenue generated by a business that is subject to taxation. It includes all sales transactions that are not exempt from tax and are therefore subject to consumption tax or other applicable taxes. This figure is important for calculating the amount of tax a business owes to the tax authorities.

給与の支払者の確認 (kyūyo no shiharai-sha no kakunin) refers to the confirmation of the payer of salaries. This phrase is often used in the context of verifying the identity and details of the entity or individual responsible for paying an employee's wages. This confirmation process is important for tax reporting, ensuring that the correct amounts are withheld and reported for tax purposes. It helps to accurately attribute the income and associated tax obligations to the appropriate employer or payer.

専従者 (senjūsha) refers to a family member who works exclusively in a family business in Japan. This term is commonly used in the context of tax deductions for small businesses and self-employed individuals. If a family member, such as a spouse, child, or other relative, works full-time in the family business and meets certain conditions, their salary can be deducted as a business expense, reducing the overall taxable income of the business.

To qualify as a senjusha, the family member must be at least 16 years old, work primarily for the business, and receive a reasonable salary that is commensurate with their duties. The business owner must keep accurate records of the family member's employment, including work hours and salary payments, to substantiate the deduction.

This deduction is known as 専従者控除 (senjūsha kojo) and is designed to support family-run businesses by acknowledging the contributions of family members and reducing the tax burden on the business. Proper documentation and adherence to tax regulations are essential to claiming this deduction, ensuring compliance with Japanese tax laws and maximizing potential tax savings for the business.

給与収入 (kyūyo shūnyū) refers to employment income or salary income in Japan. This is the total amount of money received by an individual from their employer as compensation for work performed. Kyūyo shūnyū includes not only the base salary but also various allowances, bonuses, overtime pay, and other forms of monetary compensation provided by the employer.

This type of income is subject to income tax, social insurance premiums, and other deductions as mandated by Japanese law. Employers typically withhold these taxes and contributions from the employee's salary and remit them to the tax authorities on the employee's behalf. The amount of tax withheld is based on the individual's income level and personal allowances.

Accurately reporting kyūyo shūnyū is essential for tax purposes, as it determines the amount of income tax owed by the individual. At the end of the fiscal year, employees receive a tax certificate (源泉徴収票 = gensenchoshūhyo) from their employer, summarizing their total earnings and the taxes withheld. This certificate is used when filing annual income tax returns to ensure proper tax compliance and to claim any potential tax refunds or additional payments. Proper management and reporting of 給与収入 are vital for maintaining financial transparency and legal compliance.

法定調書合計表 (hotei chosho gokei hyo) refers to the statutory report summary table in Japan. This document is part of the annual tax reporting requirements for businesses and is submitted to the tax authorities. The hotei chosho gokey hyo provides a summary of various statutory reports that a business is required to file, such as salary payment reports, dividend payment reports, and reports on payments to subcontractors.

The summary table includes aggregated information about payments made by the business over the fiscal year, such as total amounts paid to employees, contractors, and shareholders. It ensures that all relevant financial activities are accurately reported and that the business complies with tax laws.

Submitting the hotei chosho gokei hyo is crucial for maintaining transparency and accountability in financial reporting. It helps tax authorities verify the accuracy of the reported income and ensures that the correct amount of taxes is paid. Businesses must prepare this summary table carefully, ensuring all figures are accurate and all required supporting documents are included.

償却 (shokyaku) refers to amortization or depreciation in Japan. This accounting process involves systematically reducing the book value of an asset over its useful life. It is used to allocate the cost of tangible and intangible assets, such as buildings, machinery, equipment, and patents, over the periods during which they generate economic benefits.

Shokyaku is essential for accurate financial reporting and tax compliance. It reflects the wear and tear, usage, or obsolescence of an asset. For tangible assets, this process is called depreciation, while for intangible assets, it is referred to as amortization. The amount of depreciation or amortization expense is recorded in the financial statements annually, reducing the asset's book value and impacting the company's net income.

Different methods can be used to calculate depreciation, such as the straight-line method, which spreads the cost evenly over the asset's useful life, or accelerated methods, which allocate higher expenses in the earlier years. The chosen method must comply with Japanese accounting standards and tax regulations.

Properly managing shokyaku ensures that a company's financial statements accurately represent the value of its assets and helps in planning for future capital expenditures and investments.