Japanese Business Glossary

返還インボイス (henkan inboisu) refers to an invoice issued to document the return of goods or the refund of payments. It typically includes details such as the original transaction, the reason for the return or refund, and the amount to be refunded. This invoice serves as a record for both the seller and the buyer, ensuring that the refund process is properly accounted for and documented.

除却損 (jokyakuson) refers to a loss incurred from the disposal or removal of fixed assets in Japan. This accounting term is used when a company writes off assets that are no longer usable, such as machinery, equipment, or buildings, often due to obsolescence, damage, or the end of their useful life. The loss recognized is the difference between the asset's book value and any proceeds from its disposal, if applicable. Recording jokyakuson is important for accurate financial reporting, as it reflects the true economic value of the company's assets and helps in assessing the company's financial performance. Understanding and correctly accounting for jokyakuson ensures compliance with accounting standards and provides a clear picture of the company's asset management and financial health.

保険料控除証明書 (hokenryou koujo shoumeisho) is a certificate of insurance premium deduction in Japan. This document is issued by insurance companies to policyholders, confirming the amount of premiums paid within a specific period. It serves as proof for individuals when they file their income tax returns, allowing them to claim deductions for the premiums paid towards life, medical, or other qualifying insurance policies. The certificate helps reduce the taxable income, thereby lowering the overall tax liability. Understanding and utilizing the hokenryou koujo shoumeisho is crucial for taxpayers to ensure they receive the appropriate tax benefits for their insurance contributions.

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.

寄託 (kitaku) refers to the act of entrusting or depositing something with another party for safekeeping in Japan. This term is commonly used in legal and financial contexts to describe situations where an individual or entity temporarily transfers the custody of property, assets, or documents to another party, typically for protection or management.

In a business context, kitaku can involve depositing important documents, securities, or funds with a financial institution or a trusted third party. The party receiving the deposited items is responsible for their safekeeping and may also have certain duties related to managing or preserving the items as agreed upon in the contract.

The concept of kitaku ensures that the deposited items are securely handled and returned in good condition when needed by the owner. This practice provides a legal framework for the safekeeping of valuable items and helps prevent disputes by clearly defining the responsibilities and obligations of both parties involved in the arrangement.

圧縮記帳 (asshuku kichou) refers to a bookkeeping method in Japan known as "compressed bookkeeping" or "compressed accounting." This accounting technique is used primarily to defer tax liabilities and manage the recognition of income and expenses.

In compressed bookkeeping, a company can reduce the book value of certain assets, such as fixed assets, by recording them at a lower value than their actual purchase price. This reduction creates a reserve, which can be used to offset future expenses or losses. The main objective of this method is to stabilize financial performance over time and to manage tax burdens more effectively. By deferring some of the tax liabilities to future periods, companies can smooth out fluctuations in their taxable income.

Compressed bookkeeping is subject to specific rules and regulations, and companies must comply with these requirements to benefit from this method. It is particularly relevant for businesses dealing with significant investments or assets that are prone to depreciation.