Japanese Business Glossary

請負契約 (ukeoi keiyaku) refers to a contract for work or a contract for services in Japan. This type of agreement is commonly used in construction, manufacturing, and various service industries. Under ukeoi keiyaku, one party (the contractor) agrees to complete a specific project or provide certain services for another party (the client) in exchange for compensation.

The contract details the scope of work, the specifications, the timeframe for completion, and the payment terms. It may also include clauses related to quality standards, penalties for delays, and procedures for handling changes or unforeseen issues during the project.

This type of contract is legally binding, and both parties are obligated to fulfill their respective responsibilities as outlined in the agreement. The contractor must complete the work to the agreed-upon standards and within the specified timeframe, while the client must provide the necessary support and make payments as stipulated in the contract.

This type of contract helps ensure clarity and accountability, providing a clear framework for managing projects and services. Properly drafting and adhering to the terms of a 請負契約 is crucial for preventing disputes and ensuring the successful completion of the contracted work.

借用証書 (shakuyo shosho) refers to an IOU or promissory note in Japan. This document is a written acknowledgment of debt, indicating that one party (the borrower) promises to repay a certain amount of money to another party (the lender) under specified terms and conditions. The shakuyo shosho typically includes details such as the amount borrowed, the repayment schedule, the interest rate (if any), the date of the agreement, and the signatures of both parties.

Having a promissory note is important for both the lender and the borrower as it serves as a formal and legally binding record of the loan agreement. It provides clarity on the terms of repayment and helps prevent misunderstandings or disputes. In the event of a disagreement or legal issue, a shakuyo shosho can be used as evidence in court to enforce the terms of the loan.

Maintaining accurate and comprehensive records of such agreements is essential for financial accountability and legal protection. Both parties should keep a copy of the shakuyo shosho and adhere to the agreed-upon terms to ensure a smooth and transparent lending process.

債権譲渡 (saiken joto) refers to the transfer or assignment of a claim or receivable in Japan. This legal process involves one party (the assignor) transferring their right to collect a debt or claim to another party (the assignee). The debt or claim in question is usually a financial obligation owed by a debtor to the assignor.

In a saiken joto, the assignor gives up their right to receive payment from the debtor, and the assignee gains the right to collect the debt. This can be done for various reasons, such as improving liquidity, managing credit risk, or raising funds. The process typically involves a written agreement specifying the terms of the transfer, including the details of the claim and the obligations of each party.

To make the transfer legally effective and enforceable, it is often necessary to notify the debtor about the assignment. This ensures that the debtor knows to make future payments to the assignee instead of the assignor. Proper documentation and adherence to legal requirements are crucial in a saiken joto to protect the rights of all parties involved and to ensure the smooth transfer of the claim.

源泉税 (gensenzei) refers to withholding tax in Japan. This type of tax is deducted at the source of income, meaning that it is withheld from payments such as salaries, dividends, and interest before the recipient receives the funds. Employers or payers are responsible for calculating and withholding this tax from their employees' or payees' earnings and then remitting it to the tax authorities on their behalf. The purpose of 源泉税 is to ensure the timely collection of taxes and reduce the burden of lump-sum tax payments for individuals. The withheld tax can be credited against the individual's final tax liability, and any excess amount withheld may be refunded after filing a tax return. This system helps streamline tax collection and compliance for both taxpayers and the government.

個人事業主 (kojin jigyo-nushi) refers to a sole proprietor or self-employed individual in Japan. This type of business structure is where an individual owns and operates their own business without forming a separate legal entity, like a corporation. As a sole proprietor, the individual has complete control over their business decisions and is personally responsible for all liabilities and debts incurred by the business. This also means that the income generated from the business is considered personal income and is subject to personal income tax. Many freelancers, small business owners, and independent contractors in Japan operate as kojin jigyo nushi. This structure is relatively simple to set up and manage, making it a popular choice for those starting small-scale businesses. However, it also means that the owner is directly exposed to financial risks, as there is no distinction between personal and business assets.

返還インボイス (henkan inboisu) refers to an invoice issued to document the return of goods or the refund of payments. It typically includes details such as the original transaction, the reason for the return or refund, and the amount to be refunded. This invoice serves as a record for both the seller and the buyer, ensuring that the refund process is properly accounted for and documented.