Japanese Business Glossary

弔慰金 (choi-kin) refers to condolence money in Japan. This is a monetary gift given to the family or relatives of a deceased person as an expression of sympathy and support during their time of mourning. It is a common cultural practice in Japan, reflecting respect and solidarity with the bereaved family.

The amount of 弔慰金 can vary depending on the relationship to the deceased and the customs of the specific region or community. It is often given in an envelope, typically during the funeral or memorial services.

In the context of employment, companies may also provide 弔慰金 to the family of a deceased employee as part of their welfare and benefits policies. This gesture helps to support the family financially during a difficult time and shows the company's care and concern for its employees and their families.

償却資産 (shokyaku shisan) refers to depreciable assets in Japan. These are tangible fixed assets used in business operations that lose value over time due to wear and tear, usage, or obsolescence. Examples include machinery, equipment, vehicles, buildings, and furniture.

The cost of these assets is gradually expensed through depreciation, spreading the expense over the useful life of the asset. This process reflects the asset's decreasing value and allocates the cost as an expense against the revenue it helps generate.

Depreciation of assets is crucial for accurate financial reporting and tax purposes, ensuring that the financial statements reflect the true value and usage of the assets. Properly managing and accounting for these assets allows businesses to benefit from tax deductions, optimize their financial performance, and maintain compliance with accounting standards and tax regulations.

年度 (nendo) refers to a fiscal year or academic year in Japan. It is a one-year period used for accounting, budgeting, and administrative purposes, differing from the calendar year.

In Japan, the fiscal year for most businesses and government agencies runs from April 1 to March 31 of the following year. This period is used for financial reporting, tax filings, and budget planning. Companies prepare their annual financial statements and reports based on this fiscal year, aligning their operations and financial activities accordingly.

For academic institutions, the academic year also typically starts in April and ends in March. This schedule includes school terms, exams, and other academic activities.

Understanding the concept of nendo is essential for managing financial and administrative tasks in accordance with Japanese practices and regulations.

財産 (zaisan) refers to property or assets in Japan. This term encompasses all forms of wealth owned by an individual or entity, including both tangible and intangible assets.

Tangible assets (有形資産 = yūkei shisan) include physical items such as real estate, vehicles, equipment, and personal belongings. Intangible assets (無形資産 = mukei shisan) include non-physical items such as stocks, bonds, intellectual property, patents, and copyrights.

Zaisan can also cover financial assets like cash, bank deposits, and investments. In legal and financial contexts, managing and protecting one's assets involves various activities such as estate planning, asset management, and tax planning.

脱税 (datsuzei) refers to tax evasion in Japan. This term describes the illegal practice of deliberately avoiding paying taxes owed to the government. Tax evasion can take various forms, such as underreporting income, inflating deductions, hiding assets, or failing to file tax returns altogether.

Engaging in datsuzei is a serious offense that can lead to significant penalties, including fines, interest on unpaid taxes, and even imprisonment. The Japanese tax authorities, such as the National Tax Agency (NTA), actively work to detect and prevent tax evasion through audits, investigations, and enforcement actions.

Compliance with tax laws is crucial for maintaining the integrity of the tax system and ensuring that public services and infrastructure can be adequately funded. Legal tax planning and avoidance strategies, which involve arranging financial affairs within the law to minimize tax liability, are distinct from illegal tax evasion practices.

任意団体 (nini dantai) refers to a voluntary organization or unincorporated association in Japan. This type of organization is formed by individuals or groups who come together voluntarily to pursue common goals, interests, or activities without forming a legal entity.

Nini dantai does not have legal personality, meaning it cannot own property, enter into contracts, or sue and be sued in its own name. Instead, the activities and legal responsibilities are managed by its members or representatives. Such organizations are common in various fields, including community groups, hobby clubs, volunteer associations, and some professional groups.

While voluntary organizations enjoy greater flexibility in its formation and operation compared to incorporated entities, it also has limitations, particularly in terms of legal protections and financial management. Members of 任意団体 may need to take extra care in managing finances, liabilities, and administrative responsibilities to ensure the organization's smooth operation and compliance with relevant regulations.