Japanese Business Glossary

少子高齢化 (shoshi koreika) refers to the demographic trend of a declining birth rate and an aging population. This phenomenon is characterized by a decrease in the number of children being born and an increase in the proportion of elderly individuals in the population. In Japan, this trend has significant social and economic implications.

A declining birth rate leads to a shrinking workforce, which can affect economic growth and productivity. At the same time, an aging population increases the demand for healthcare and social services, putting pressure on the social security system and public finances. Addressing Japan's aging population requires comprehensive policies that support families, encourage higher birth rates, and provide adequate care for the elderly, while also adapting to a changing workforce.

貸倒引当金 (kashidaore hikiatekin) refers to a bad debt reserve or allowance for doubtful accounts. This is a financial provision that businesses set aside to cover potential losses from customers who may be unable to pay their debts.

In accounting, this allowance is created to reflect the realistic value of a company's receivables by accounting for the possibility of non-collection. It involves estimating the amount of receivables that are unlikely to be collected and recording this estimate as an expense, which reduces the net income. The corresponding allowance is recorded on the balance sheet as a contra asset account, reducing the total accounts receivable.

By maintaining a kashidaore hikiatekin, companies can better manage their financial health and ensure more accurate financial reporting.

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.

契約 (keiyaku) refers to a contract or agreement. This is a legally binding arrangement between two or more parties, outlining the terms and conditions under which they agree to perform specific actions or refrain from certain activities.

Contracts can cover a wide range of transactions, including sales, services, employment, leases, and partnerships. The essential elements of a valid contract typically include an offer, acceptance, consideration (something of value exchanged), and mutual intent to be bound by the agreement.

In Japan, as in many other countries, contracts can be written or verbal, though written contracts are preferred for clarity and enforceability. Properly drafted and executed contracts help ensure that all parties understand their rights and obligations, reducing the risk of disputes and providing a legal framework for resolving any issues that may arise.

賠償金 (baishokin) refers to compensation or damages paid to an individual or entity as a result of harm, loss, or injury caused by another party. This compensation aims to restore the injured party to the position they were in before the harm occurred.

In legal contexts, baishokin can be awarded in various situations, including personal injury cases, breach of contract disputes, property damage, and other civil wrongs. The amount of compensation is determined based on the extent of the damage or loss suffered and may cover medical expenses, lost income, property repairs, and other related costs.

Paying compensation ensures that the responsible party acknowledges their liability and provides financial relief to the injured party, helping to resolve disputes and promote justice.

猶予 (yūyo) refers to a postponement, deferment, or grace period. This term is used to describe the allowance of extra time before a specific obligation must be fulfilled or a deadline must be met.

Yuyo can apply in various contexts, such as extending the time to make a payment, complete a task, or comply with a legal requirement. For instance, in financial terms, it might refer to a deferment of loan repayments, giving the borrower additional time before they need to start making payments. In legal contexts, it could involve delaying the enforcement of a court judgment or sentence.

Granting a deferment can provide relief and flexibility, allowing individuals or businesses to manage their responsibilities more effectively without immediate pressure.