Japanese Business Glossary

累進課税 (ruishin kazei) refers to progressive taxation in Japan. Japan's tax system is designed so that the tax rate increases as the taxable amount (such as income or profit) increases. In other words, individuals or entities with higher incomes or profits are taxed at higher rates compared to those with lower incomes.

Progressive taxation aims to achieve a more equitable distribution of wealth by ensuring that those with greater financial resources contribute a larger share of their income in taxes. This system is commonly used for income tax, where different income brackets are taxed at different rates.

For example, lower income brackets might be taxed at a rate of 10%, while higher income brackets might be taxed at progressively higher rates, such as 20%, 30%, or more. This approach helps to reduce income inequality and provides the government with a mechanism to collect more revenue from those who are more able to pay.

電子帳票システム (denshi chohyo shisutemu) refers to an electronic document management system in Japan. This system is used to create, store, manage, and distribute electronic forms and documents, according to the Electronic Bookkeeping Act, replacing traditional paper-based processes.

The electronic document management system streamlines administrative tasks, enhances efficiency, and improves accuracy by automating the handling of various documents, such as invoices, purchase orders, and reports. It often includes features like digital signatures, secure storage, and easy retrieval of documents, ensuring compliance with legal and regulatory requirements.

By adopting an electronic document management system, businesses can reduce costs associated with paper, printing, and storage, while also minimizing the risk of errors and enhancing data security. This system is particularly valuable in improving workflow, facilitating better data management, and supporting the digital transformation of business operations.

債権 (saiken) refers to a claim or receivable in Japan. This term describes the right of a creditor to receive a specific payment or performance of an obligation from a debtor. Essentially, it represents a financial asset for the creditor and a liability for the debtor.

In a business context, saiken can include various types of receivables, such as accounts receivable from customers, loans, bonds, or any other financial claims. For example, when a company sells goods or services on credit, the amount owed by the customer becomes a saiken for the company.

The management of claims is crucial for maintaining healthy cash flow and ensuring that the business can meet its financial obligations. Properly managing and collecting these receivables helps in optimizing the company's financial health and operational efficiency.

所得金額 (shotoku kingaku) refers to the amount of income or income amount in Japan after business expenses have been removed. This term is commonly used in tax and financial contexts to denote the total income that an individual or business earns before any deductions, such as taxes or social security contributions.

Calculating the correct shotoku kingaku is essential for accurate tax reporting and compliance with tax regulations. This amount forms the basis for various tax calculations and assessments, impacting the final tax amount that needs to be paid or refunded.

厚生費 (koseihi) refers to welfare expenses or employee welfare costs in Japan. These expenses are related to the well-being and benefits provided to employees by their employer and are part of the overall personnel costs for a company.

Koseihi can include expenses such as health and safety measures, employee recreational activities, company-sponsored events and social gatherings, subsidies for meals, transportation, and housing, health insurance premiums, and retirement benefits and pension contributions.

These expenses aim to improve the quality of life for employees, promote a healthy and supportive work environment, and enhance employee satisfaction and motivation. By investing in koseihi, companies can foster better employee relations, reduce turnover, and ultimately increase productivity.

印紙 (inshi) refers to revenue stamps in Japan. These stamps are used as a form of tax payment for certain legal documents and transactions. The use of revenue stamps is mandated by Japanese law to ensure that the appropriate taxes are paid on various types of documents, such as contracts, receipts, and certificates.

When a document requires a revenue stamp, the appropriate stamp must be purchased and affixed to the document. The value of the stamp depends on the nature and amount of the transaction or the type of document. For instance, higher-value transactions typically require higher-value revenue stamps.

Revenue stamps are a way for the government to collect taxes directly linked to specific transactions and legal activities. Using these stamps helps to verify that the required taxes have been paid, thereby ensuring compliance with tax regulations.