Japanese Business Glossary

還付金 (kanpukin) typically refers to money returned to an individual or entity, often from the government or a financial institution, usually because of an overpayment or correction of an error. In the context of taxes, kanpukin refers to a tax refund that occurs when the amount of tax paid exceeds the actual tax liability, resulting in a reimbursement to the taxpayer.

所得控除 (shotoku kojo) translates to income deduction. This term refers to the amounts that can be subtracted from an individual's gross income to determine their taxable income. Income deductions are used to lower the overall tax liability and may include deductions for dependents, medical expenses, insurance premiums, and various other qualifying expenses. By applying these deductions, taxpayers can reduce the portion of their income that is subject to tax.

法人税 (hojinzei) translates to the corporate tax or corporation tax in English. This tax is imposed on the income or profits of corporations and other legal entities in Japan. The tax is calculated based on the company's taxable income, which includes revenue minus allowable deductions and expenses. The corporate tax rate and specific regulations are determined by Japanese tax laws and may vary depending on the size and type of the corporation.

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.

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.