Japanese Business Glossary

除却 (jokyaku) refers to the removal or disposal of an asset in Japan. In an accounting and tax context, it means writing off or eliminating an asset from the company's books. This process is undertaken when an asset is no longer usable, has been sold, or has become obsolete.

When a business decides to dispose of an asset, it must adjust its financial records to reflect the asset's removal. This typically involves recognizing any remaining book value of the asset as a loss or gain, depending on the circumstances of its disposal. For example, if the asset is sold, the proceeds from the sale will be compared to its book value to determine the financial impact. If the asset is scrapped, the book value is usually recorded as a loss.

Proper documentation and reporting of asset disposal are crucial for maintaining accurate financial statements and ensuring compliance with tax regulations. It helps businesses keep their financial records up to date and provides a clear picture of the company's asset management and financial health.

地方税 (chihozei) refers to local taxes in Japan. These taxes are levied by municipal and prefectural governments to fund various public services and infrastructure projects within their jurisdictions. Chihozei includes a variety of taxes such as residential tax, property tax, and business tax. Each type of local tax serves different purposes and is calculated based on specific criteria relevant to the taxpayer's circumstances.

Residential tax, for example, is imposed on individuals based on their income and place of residence. Property tax is levied on the ownership of land and buildings, and business tax is charged to companies based on their business activities and profits. The rates and regulations for these taxes can vary significantly between different municipalities and prefectures.

Chihozei is crucial for local governments as it provides the necessary funds to maintain and improve public services such as education, healthcare, transportation, and public safety. Residents and businesses are required to comply with local tax laws, ensuring timely payment to support their communities. Understanding and managing local tax obligations is essential for financial planning and compliance with Japanese tax regulations.

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.

領収書 (ryoshūsho) refers to a receipt or proof of payment in Japan. This document is issued by a seller or service provider to a buyer to acknowledge that payment has been received for goods or services. A typical receipt in Japan includes details such as the date of the transaction, the amount paid, a description of the goods or services, the name and contact information of the seller, and the payment method used.

Ryoshusho is an important document for both businesses and individuals, serving as a record of expenses for accounting, tax reporting, and reimbursement purposes. For businesses, keeping accurate receipts helps ensure proper bookkeeping and can be used to claim deductions on business expenses. For individuals, especially those who are self-employed, these receipts are essential for tracking personal expenses and filing accurate tax returns.

It is important to request and retain receipts for all significant transactions to ensure compliance with tax regulations and to maintain an organized financial record.

控除対象扶養親族 (kojo taisho fuyo shinzoku) refers to dependent relatives eligible for tax deductions in Japan. These are family members whom a taxpayer supports financially and who meet certain criteria set by the Japanese tax authorities. By claiming these dependents, taxpayers can reduce their taxable income, thereby lowering their overall tax burden.

To qualify as a dependent relative, the dependent must typically reside in the same household as the taxpayer or be financially supported by them. They must also have an annual income below a specified threshold. Common examples include children, elderly parents, and sometimes siblings. Claiming such dependents on a tax return allows for various deductions, which can lead to significant tax savings for the taxpayer.

Maintaining accurate records and documentation is essential for claiming these deductions, as tax authorities may require proof of the dependent's eligibility during tax assessments.