Japanese Business Glossary

役務 (ekimu) refers to services or labor provided in exchange for compensation in Japan. Unlike tangible goods, ekimu encompasses various forms of intangible work or assistance offered by individuals or businesses. This can include professional services such as consulting, legal advice, maintenance work, and other forms of labor or expertise. The concept of ekimu is essential in the Japanese business landscape as it covers a broad spectrum of activities that support the functioning and growth of companies. In legal and commercial contexts, accurately defining and valuing ekimu is important for contracts, pricing, and taxation purposes. Understanding ekimu helps businesses and service providers establish clear agreements and ensure fair compensation for the services rendered.

通勤手当 (tsuukin teate) refers to commuting allowance in Japan. This is a benefit provided by employers to their employees to cover the costs of traveling between home and work. The commuting allowance can include expenses for public transportation such as trains and buses, or even fuel costs if the employee drives a personal vehicle to work. The provision of a commuting allowance is a common practice in Japanese companies and is often included as part of the employee's compensation package. This allowance helps alleviate the financial burden of commuting and supports employees in maintaining a consistent and punctual attendance at work.

専従者 (senjuusha) refers to a dedicated worker or full-time worker in Japan. This term is commonly used in the context of family-run businesses or sole proprietorships where family members work full-time in the business. These individuals are not merely assisting part-time but are fully engaged in the day-to-day operations and management of the business. Recognizing someone as a senjuusha has implications for tax purposes, as the business owner can deduct a certain portion of the salary paid to these family members from their taxable income. This designation helps formalize the contributions of family members and provides a clearer structure for financial and operational responsibilities within the business.

一般社団法人 (ippan shadan hojin) refers to a general incorporated association in Japan. This type of legal entity is a non-profit organization that can be established by two or more individuals or entities. Unlike commercial corporations, ippan shadan hojin is not formed for profit-making purposes but rather to pursue common goals or activities, such as social, cultural, educational, or charitable objectives.

To establish an ippan shadan hojin, the founders must draft and register the articles of incorporation with the Legal Affairs Bureau. These articles include essential details such as the organization's name, purpose, office location, activities, and governance structure. Once registered, the association gains legal status and can enter into contracts, own property, and conduct activities in its name.

The management of a general incorporated assocation is typically overseen by a board of directors, which is responsible for making decisions and ensuring that the organization operates in accordance with its stated purposes and legal requirements. The organization must also adhere to reporting and disclosure obligations to maintain transparency and accountability.

While ippan shadan hojin is a non-profit entity, it can generate revenue through its activities, donations, membership fees, and grants. However, any surplus revenue must be reinvested into the organization's activities and cannot be distributed to members or directors.

Overall, a general incorporated assocation provides a flexible and structured way for groups to organize and pursue their non-profit objectives, contributing to various social, cultural, and community initiatives in Japan.

支払調書 (shiharai chosho) refers to a payment report or payment statement in Japan. This document is issued by a business or payer to report various payments made to individuals or other businesses over a fiscal year. The shiharai chosho is submitted to the tax authorities and is also provided to the recipients of the payments for their tax reporting purposes.

The shiharai chosho includes details such as the recipient's name, address, tax identification number, the amount paid, and the type of payment (e.g., salary, contractor fees, royalties, interest). This document is essential for ensuring transparency and compliance with tax regulations, as it helps both the payer and the recipient accurately report their income to the tax authorities.

For businesses, issuing a payment statement is part of their annual tax reporting obligations. They must compile and submit these statements to the tax office by a specified deadline, usually at the end of January for payments made in the previous calendar year. The information provided in the shiharai chosho assists the tax authorities in cross-checking income declarations and verifying that all taxable income is properly reported.

For recipients, receiving a shiharai chosho allows them to understand the payments they received and to report their income correctly on their tax returns. It serves as a record of income that can be used to claim deductions, credits, and to ensure accurate tax filing.

請求書 (seikyūsho) refers to an invoice in Japan. This document is issued by a seller or service provider to a buyer or client, detailing the products or services provided and the amount owed. An invoice typically includes important information such as the date of issuance, invoice number, seller's and buyer's contact information, a description of the goods or services, quantities, unit prices, total amount due, payment terms, and due date.

A seikyusho serves several important functions in business transactions. It acts as a formal request for payment, providing a clear record of the transaction and ensuring both parties have the necessary details for accounting and tax purposes. For the seller, issuing an invoice helps track receivables and manage cash flow. For the buyer, it provides a documented expense that can be matched against deliveries or services received and used for internal accounting.

In Japan, proper issuance and management of invoices are crucial for maintaining financial accuracy and compliance with tax regulations. It ensures transparency and accountability in commercial activities, helping both parties to uphold their financial obligations and avoid disputes.