Japanese Business Glossary

地方法人税 (chiho hojinzei) refers to local corporate tax in Japan. This tax is imposed on corporations by local governments, in addition to the national corporate tax. The local corporate tax is designed to provide local governments with a stable source of revenue to fund public services and infrastructure within their jurisdictions.

The tax rate and regulations can vary depending on the specific local government, but it is generally based on the corporation's income and operations within that area. Corporations are required to file and pay this tax along with their national corporate tax returns.

Understanding and complying with chiho hojinzei is crucial for businesses operating in Japan, as it ensures they meet all local tax obligations and contribute to the economic well-being of the regions where they conduct their business activities.

自動車重量税 (jidosha jūryozei) refers to the automobile weight tax in Japan. This tax is levied on vehicles based on their weight and is typically collected during the vehicle inspection process, known as "shaken." The purpose of the automobile weight tax is to contribute to the maintenance and improvement of road infrastructure, as heavier vehicles cause more wear and tear on the roads.

The amount of the tax varies depending on the type and weight of the vehicle, with heavier vehicles generally subject to higher taxes. This tax is paid regularly, usually every two years during the mandatory vehicle inspection. Paying the vehichle weight tax is a legal requirement for vehicle owners in Japan, and failure to do so can result in penalties or the inability to renew the vehicle's registration.

国税 (kokuzei) refers to national taxes in Japan, which are levied by the central government. These taxes are distinct from local taxes, which are imposed by prefectural and municipal governments. National taxes include income tax, corporate tax, consumption tax, inheritance tax, and gift tax, among others.

The revenue from kokuzei is used to fund various national programs and services, such as public infrastructure, education, defense, and social security. The collection and administration of national taxes are managed by the National Tax Agency (NTA) of Japan, which ensures compliance with tax laws and regulations.

Understanding and fulfilling kokuzei obligations is crucial for individuals and businesses operating in Japan, as it supports the country's economic stability and development.

接待交際費 (settai kosaihi) refers to entertainment and social expenses incurred in the course of business activities in Japan. These expenses are typically related to entertaining clients, customers, or business partners to strengthen business relationships and foster goodwill.

Examples of settai kosaihi include costs for meals, drinks, event tickets, and other hospitality activities. While these expenses can be substantial, they are often considered necessary for maintaining and developing business connections.

In accounting and tax contexts, settai kosaihi may be partially or fully deductible, subject to certain limits and conditions set by tax regulations. Proper documentation and justification of these expenses are important to ensure compliance with tax laws and to take advantage of any allowable deductions.

税務調査 (zeimu chosa) refers to a tax audit or tax investigation conducted by tax authorities to ensure compliance with tax laws and regulations. During a zeimu chosa, tax officials examine a taxpayer's financial records, accounts, and other relevant documents to verify the accuracy of reported income, deductions, and tax payments.

The purpose of zeimu chosa is to identify any discrepancies, errors, or potential tax evasion. It can involve reviewing business transactions, invoices, receipts, and bank statements. Tax audits can be routine or triggered by specific red flags or anomalies in tax filings.

Undergoing a tax audit in Japan can be a detailed and thorough process, requiring cooperation and transparency from the taxpayer. Proper documentation and adherence to tax laws are essential to ensure a smooth audit process and to avoid penalties or additional tax liabilities.

ワンストップ特例制度 (one-stop tokurei seido) refers to the One-Stop Special Exception System in Japan. This system simplifies the tax deduction process for individuals who make donations under the Furusato Nozei (hometown tax donation) program.

Under this system, taxpayers who donate to local governments can apply for tax deductions without having to file a final income tax return. Instead, they submit a one-stop application form to the local government receiving the donation, which then handles the paperwork to ensure the donor's residence municipality applies the tax deduction directly.

This system is especially useful for salaried workers who typically do not file annual tax returns, making it easier for them to benefit from the Furusato Nozei program without additional administrative burdens.