Glossary
Japanese money terms, in English and Japanese.
- つみたて投資枠tsumitate tōshi wakuAccumulation frame (NISA)
- The NISA frame for regular, automated investing in regulator-screened funds, up to ¥1.2M per year.
- 振込furikomiBank transfer
- A transfer of money to another bank account, often used for rent, invoices, and payments. Fees vary by bank and channel.
- 青色申告aoiro shinkokuBlue tax return
- A filing status that rewards double-entry bookkeeping with a deduction of up to ¥650,000 and loss carry-forward.
- 諸費用shohiyōClosing costs
- The one-off costs of buying property (agent fees, registration, taxes, insurance), typically 6–10% of the price.
- 消費税shōhizeiConsumption tax
- Japan’s value-added tax: 10% standard, 8% reduced for food and certain items. Relevant to businesses above the taxable threshold.
- 暗号資産angō shisanCrypto-asset
- Cryptocurrency. Gains are taxed as miscellaneous income at marginal rates; only FSA-registered exchanges may serve residents.
- 口座振替kōza furikaeDirect debit
- Automatic withdrawal from your bank account for recurring bills such as rent, utilities, and credit-card payments.
- 地震保険jishin hokenEarthquake insurance
- A government-backed rider added to fire insurance. Payouts are capped at a share of the building/contents value.
- 確定申告kakutei shinkokuFinal tax return
- The annual income-tax return, filed Feb 16 – Mar 15, required for side income, self-employment, or to claim certain deductions.
- 高額療養費kōgaku ryōyōhiHigh-Cost Medical Expense Benefit
- A public system that caps your monthly out-of-pocket medical costs based on income, limiting the cost of serious illness.
- 住宅ローンjūtaku rōnHome loan (mortgage)
- A mortgage. Eligibility weighs income, employment, and often permanent residency; choose between fixed and floating rates.
- ふるさと納税furusato nōzeiHometown tax donation
- A scheme to donate to local governments for gifts while deducting almost all of the donation from your taxes (¥2,000 net cost).
- 本人確認honnin kakuninIdentity verification (KYC)
- The identity-verification process required to open financial accounts, using documents such as a residence card.
- マイナンバーmai nambāIndividual Number
- A 12-digit personal ID number used for tax, social security, and increasingly for financial account identification. Some banks and brokerages require it.
- 海外送金kaigai sōkinInternational remittance
- Sending money across borders. Watch the exchange-rate markup, which often costs more than the visible transfer fee.
- 国民健康保険kokumin kenkō hokenNational Health Insurance
- Public health insurance for those not covered by employees’ insurance (e.g. freelancers). Premiums are income-based and billed by your municipality.
- 開業届kaigyō todokeNotification of business opening
- The form filed with the tax office to register as a sole proprietor. Free and quick; often filed with the blue-return application.
- iDeCoidekoPrivate defined-contribution pension
- A private, tax-advantaged defined-contribution pension. Contributions reduce taxable income now but funds are locked until age 60.
- インボイス制度inboisu seidoQualified invoice system
- The consumption-tax system (from Oct 2023) under which buyers need a supplier’s T-number to claim input tax credits.
- 在留カードzairyū kādoResidence card
- The government-issued ID card for mid-to-long-term foreign residents. It is the primary document for opening bank accounts, applying for cards, and most financial services.
- 住民税jūminzeiResident tax
- Local tax of roughly 10%, billed the year after the income is earned — often a surprise in a new resident’s second year.
- 減税genzeiTax reduction
- A reduction in tax owed, achieved through deductions and credits such as medical expenses, dependents, or the mortgage credit.
- NISAnīsaTax-free investment account
- A tax-free investment account. Since 2024 it allows ¥3.6M/year (¥18M lifetime) of investments whose gains are exempt from tax.
- 年末調整nenmatsu chōseiYear-end adjustment
- The employer process that reconciles withheld income tax at year-end, so most single-employer employees do not file a return.