Japanese Business Glossary

時価 (jika) refers to the current market value or fair market value of an asset. This term is used in accounting, finance, and real estate to represent the price at which an asset would trade in a competitive auction setting.

Jika is the value that buyers are willing to pay and sellers are willing to accept in an open market. It reflects the most accurate and up-to-date valuation of an asset, considering supply and demand dynamics, economic conditions, and other relevant factors. In financial statements, jika can be used for valuing investments, real estate properties, or other assets to ensure they are accurately represented according to their true market worth.

所得証明書 (shotoku shōmeisho) refers to an income certificate in Japanese. It is an official document issued by municipal offices that provides proof of an individual's income for a specific period, usually the previous year. This certificate includes details such as the individual's total income, tax deductions, and taxable income.

A shotoku shomeisho is often required for various administrative and financial purposes, such as applying for loans, scholarships, public housing, social welfare programs, or when proving eligibility for certain services and benefits. To obtain a shotoku shomeisho, an individual typically needs to apply at their local city hall or municipal office, providing necessary identification and information.

マル優 (maruyu) refers to a tax exemption system in Japan for small savings. This system allows individuals to receive tax-free interest on certain deposits and investments up to a specified limit. The full name is 少額貯蓄非課税制度 (shōgaku chochiku hikazei seido), which translates to small savings non-taxable system.

Under the maruyu system, eligible individuals, such as the elderly, disabled, or widows, can register their savings accounts, fixed-term deposits, and other qualifying financial products to be exempt from taxes on the interest earned. The tax-free limit is typically set per individual, and any interest earned beyond this limit is subject to normal taxation. This system is designed to encourage savings among those who may have limited income.

仮払消費税 (karibarai shōhizei) refers to "prepaid consumption tax" or "temporary payment of consumption tax" in Japanese. It represents the consumption tax that a business pays when purchasing goods or services, which can later be offset against the consumption tax it collects from its customers.

In the Japanese tax system, businesses are required to pay consumption tax on their purchases (input tax) and collect consumption tax on their sales (output tax). At the end of the tax period, the business calculates the difference between the output tax collected and the input tax paid. If the output tax is greater, the business pays the difference to the tax authorities. If the input tax is greater, the business can receive a refund or carry the excess forward to the next tax period.

Karibarai shōhizei is thus an important concept for businesses as it directly affects their cash flow and tax liability.

付加価値税 (fuka kachi zei) refers to the value-added tax (VAT) in Japanese. It is a type of consumption tax that is applied to the value added at each stage of production or distribution of goods and services. In Japan, this tax is commonly known as consumption tax (消費税 = shōhizei).

The tax is ultimately borne by the end consumer, but it is collected by businesses at each stage of the supply chain. Businesses charge VAT on their sales (output tax) and can deduct the VAT they have paid on their purchases (input tax). The difference between the output tax and input tax is then remitted to the tax authorities.

VAT is a significant source of revenue for the government and is used to fund various public services and infrastructure projects. In Japan, the standard VAT rate is currently 10%, with a reduced rate of 8% for certain items such as food and non-alcoholic beverages.

16歳以上19歳未満の扶養親族 (jūroku-sai ijō jūkyū-sai miman no fuyō shinzoku) refers to dependent relatives who are between 16 and 19 years old in Japan. This term is used in the context of tax deductions and allowances.

In Japan, taxpayers can claim deductions for dependents, which reduce their taxable income and ultimately the amount of tax owed. Dependents in this age range are typically high school students who are financially supported by the taxpayer. The specific rules and amounts for deductions can vary, but the inclusion of such dependents helps lessen the financial burden on families supporting older children who are not yet financially independent.