Ⅱ

Efforts to Enhance Services for Taxpayers
and to Boost Efficiency of Tax Administration〜 Enhanced taxpayer services achieved by public relations activities, tax
education, tax consultation, etc. 〜Japan adopts a self-assessment system for most of its national taxes. Under this system, taxpayers
themselves calculate their income and tax amount, based on which they file and make a payment. In orderfor the self-assessment system to function properly, at the NTA, we do our best to ensure taxpayers havea high level of awareness regarding tax payment and proactively and properly fulfill the obligation of tax
responsibilities as provided by the law.
To this end, the NTA is working to enhance a variety of services for taxpayers while cooperating andcoordinating with Certified Public Tax Accountants (CPTAs) and relevant private organizations. These
include (1) public relations activities and tax education relating to the significance and function of taxes
and knowledge about the tax law, (2) clarification of legal interpretation and of practices, procedures,etc., (3) centralization of taxpayer contact points, and (4) efforts to improve taxpayer convenience in tax
consultation and filing returns.

1

Providing information, etc.

〜 Various public relations activities 〜
The NTA provides taxpayers with useful information on tax filing and payments, etc.
More specifically, focused on the NTA website (https://www.nta.go.jp), the NTA provides a variety
of information on the significance and roles played by taxes and on the tax system. The information is
also provided through the mass media, such as TV and newspapers, and public relations mediums suchas pamphlets made available at the Tax Offices as well as municipal offices, and various explanatory
meetings (accessed 332.83million times in FY2018).
The NTA also answers to general inquiries and consultations related to taxes by telephone and othermeans, while providing information on the interpretation and handling of general tax law through the NTA
website, etc. Furthermore, it responds to advance inquiries where there are questions on tax applications
related to actual transactions.

Think About Tax Week
The NTA has been regularly taking measures for the improvement in the awareness regarding tax payment
to assist citizens to deeply understand the significance and functions of taxes and the current state of tax
administration, and to proactively and properly fulfill the obligation of tax responsibilities.
The week from November 11 to 17 is annually set in particular as the Think About Tax Week. The NTA
conducts various PR activities mainly during this period and also considers this period as an opportunity to receive
opinions and requests for tax administration.
The NTA recognizes that understanding the relationship between the lives of the people and taxes through thiseffort is essential to maintain and develop self-assessment system.

⑴ Information provided on the NTA website〜 The NTA website is designed with a focus on taxpayer convenience 〜
To enable anyone to easily use its website, the NTA is making efforts to deliver information in an easyto-understand format, such as simplified layout of the website with menu selection consolidated, and pays
attention to convenience for the visually disabled and the elderly by providing text enlargement, voice
reading functions, etc.
In addition, optimized display on a smartphone or tablet screen is delivered through a function which
automatically adjusts the display in accordance with the size of the display (responsive web design).
The NTA also has a website for cellular phones, etc. (https://www.nta.go.jp/m (in Japanese))

11

NATIONAL TAX AGENCY REPORT 2019

2

* The following diagram is as of May 2019.

1

1

Function to search through informationon the entire NTA website by referencing
a keyword3
6

Search function within thewebsite2

5

orts
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forforTaxpayers
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Eﬃciency of Tax Administration

4

About the NTA

Overview of NTA Website (top page)

Text enlargement / voice
reading

Support functions for the elderly andthose who have visual disorders3

Proper and Fair
Taxation and Collection

Global navigation

Information guide that serves as an
entrance to various information sites

47

8

Urgent notice

Displays highly urgent information,such as disaster-related messages

Remedy for
Taxpayer Rights

5

New arrivals

Displays new arrival information in atable by content

96Monthly access ranking

7

LiquorAdministration

Displays pages with the most accessin a ranking format

Menu by area of interest

Displays page with the most accessby area of interest

8

Ensuring Proper
Administration of Services
by Certiﬁed Public Tax
Accountants (CPTAs)

10

Search for tax office

Enables the user to search for its
jurisdictional tax office by postal codeor address

11

9

SNS, etc.

10Evaluation of
Policies

Collects and displays information fromall tools used by the NTA to release
information

Banner

Displays the contents to be distributedin the form of banner depending on
various situations

11

Statistics

Site map

Displays the composition of the entire
NTA website in a table＊ The NTA submits information including new information regarding the NTA and a press release through the official NTA Twitter account (@NTA̲Japan)
other than the NTA website. The free video sharing site YouTube also delivers videos with information on the NTA activities (including the publicity
activities of each Regional Taxation Bureau and Tax Office) and support for self-assessment procedures.

NATIONAL TAX AGENCY REPORT 201912

to Enhance Services for Taxpayers and to Boost
Ⅱ Efforts
Efficiency of Tax Administration⑵ Tax education〜 Developing the environment for, and providing support for enhanced tax
education 〜
The NTA works on developing the environment forand providing support for a solid tax education in school
education, so that the significance and roles of taxationthat forms the countryʼs foundations will be correctly
understood.
Specifically, the Council for Promoting Tax Education
among related ministries, etc. (consisting of the NTA,
Ministry of Internal Affairs and Communications, Ministryof Education, Culture, Sports, Science and Technology,etc.) meets to discuss effective support measures.
Furthermore, we dispatch our staff as teachers to tax

Tax☆Space UENO

education classes on the request of schools as well asorganize tax essay contests, via cooperation from theCertified Public Tax Accountantsʼ Associations and therelevant private organizations, mainly by councils forpromoting tax education established in each prefecture(members comprised of Regional Taxation Bureaus, Tax
Offices, local authorities, educational leaders, etc.).
Moreover,Takingintoaccountchangesintheenvironment surrounding tax education, such as revisionof the education guideline and increasing importanceof citizenship education, the NTA is making efforts todevelop courses and teaching materials that deliver a
profound learning experience by accurately ascertaining
the needs of the educators and collaborating withrelated agencies, enabling children and students to makeobservations in a subjective and interactive manner. A

Tax learning section (top page) (as of May 2019)

Tax learning section is provided on the NTA website (https://www.nta.go.jp/taxes/kids/ (in Japanese))
as a page for site visitors, like school children, students, etc. to study the significance and roles of taxation.
Tax☆Space UENO, a facility for tax education in the Tokyo-Ueno Tax Office, holds Tax Office Tourand Experiential Learning events as well. For further information, please see the NTA website (https://www.nta.go.jp/about/organization/tokyo/education/taiken/01.htm (in Japanese)).

■ Number of lecturers dispatched toTax Education Class, etc.
Fiscal year

2017

2018

Officials

9,075

9,203

Non-officials

31,78834,133

Total

40,86343,336＊ Includes the number of lecturers dispatched to universities
and vocational schools.

13

NATIONAL TAX AGENCY REPORT 2019

■ Number of essays entered for Tax
Essay Contest
Fiscal year

2017

2018

Received from highschool students

218,208

219,163

Received from juniorhigh-school students

616,072

593,795

About the NTA

Providing tax knowledge through the Tax Museum

orts
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forforTaxpayers
and
toto
Boost
Eﬃciency of Tax Administration

The Tax Museum in the National Tax College has valuable
collections of historical documents and materials regarding
national taxes. The Museum displays its large number ofcollections throughout the year and is open to a wide varietyof visitors such as primary school children and other people
as well as specialists on tax history.
For further information, please visit the National Tax
College section within the NTA website (https://www.nta.
go.jp/about/organization/ntc/english/).

Proper and Fair
Taxation and Collection

Tax Museum⑶ Lectures〜 Tax Enlightenment Activities to Improve Awareness Towards Tax Payment 〜
Regional Taxation Bureaus and Tax Offices, forcollege students and adults with the objective toimprove awareness towards tax payment, aiming
towards development of understanding towards
tax

payment

throughaccurate

Remedy for
Taxpayer Rights

The NTA holds lectures, supported by the■ Frequency of lectures
Fiscal year

2016

2017

Frequency held

1,690 times

1,993 times

knowledge

LiquorAdministrationand proactive thoughts on the role of taxes,
significance of the self-assessment system and therights and obligations of taxpayers.

Ensuring Proper
Administration of Services
by Certiﬁed Public Tax
Accountants (CPTAs)⑷ Briefings for taxpayers〜 Organizing various educational sessions to provide information 〜
To help taxpayers better understand the tax
procedures and tax system revisions, the NTA
holds a variety of briefings, including: (1) various
briefings on tax returns, (2) year-end adjustment
laws, and (4) briefings for newly establishedcorporations.

Operation year

2016

2017

Frequency held

23,058 times

25,939 times

Number ofparticipants

Evaluation of
Policies

briefings, (3) briefings on revisions to the tax■ Frequency of briefings and number ofparticipants

1,062
1,105
thousand people thousand people

Statistics

NATIONAL TAX AGENCY REPORT 201914

to Enhance Services for Taxpayers and to Boost
Ⅱ Efforts
Efficiency of Tax Administration⑸ Advance inquiries〜 Enhanced predictability for taxpayers 〜
In case taxpayers have some doubts regarding■ Number of Advance Inquiries
received by written reply procedure

the tax treatment of any transaction conductedor to be conducted, Tax Offices receive advanceinquiries before taxpayers start a trade or file a tax
return and provide answers. If requested, a written
answer may be provided under certain conditions
and disclosed as Q&As on the NTA website

Fiscal year

2017

2018

Number of Advance
Inquiries Received

133

133

(https://www.nta.go.jp/law/bunshokaito/01.htm(in Japanese)).

■ Number of Q&A examples posted on
websiteBesides written answers, answers that canserve as reference for taxpayers among ones toadvance inquiries, are also carried on the NTA
website as examples in Q&As. (https://www.nta.
go.jp/law/shitsugi/01.htm (in Japanese)).

Fiscal year

2017

2018

Number of Q&A posted

1,928

1,953

⑹ Tax consultation〜 General tax consultations are handled at centralized Phone Consultation
Centers 〜
Phone Consultation Centers at Regional Taxation Bureaus
provide centralized handling of general national tax questions
and consultations from taxpayers. Phone Consultation Centers
at Regional Taxation Bureaus in Tokyo, Nagoya and Osaka also
provide tax consultation in English.
Also, the NTA website provides information in its Tax Answer
section (https://www.nta.go.jp/taxes/shiraberu/taxanswer/index2.
htm (in Japanese)), in which general answers to frequently asked

Phone Consultation Centerquestions are posted (it also provides a mobile phone site.).

■ Phone Consultation Center; Number of consultations and numberof times Tax Answer was accessed（thousands）
90,00080,00072,89970,00060,00069,94465,27558,222
5,685

53,338

5,570

5,800

5,600
5,443

40,0005,288

30,000

5,400
5,355

5,190

5,200

5,006

Number of times ‶Tax Answer" accessed
Number of Phone Consultation Center consultations

10,000

2012

15

6,000

74,94050,00020,000（thousands）

86,662

2013

NATIONAL TAX AGENCY REPORT 2019

2014

2015

2016

2017

2018
（Fiscal year）

5,000

4,800

About the NTA〜 Tax Offices will provide individual and specific tax consultation services on aprior appointment basis 〜
When consultation by interview is required, for example if it is necessary to check specific documents
or facts, appointments can be made in advance at the Tax Office with jurisdiction. This serves to eliminate
wait time at the Tax Office, as part of our efforts for effective and efficient operation which matches thecontent of consultations.

orts
Enhance
Services
EﬀEﬀ
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toto
Enhance
Services
TaxpayersandBoost
forforTaxpayers
and
toto
Boost
Eﬃciency of Tax Administration

Response to affected taxpayers and other parties

Proper and Fair
Taxation and Collection

The NTA took a measure to extend the national tax filing and payment deadlines for the regions which wereaffected by The Heavy Rain Event of July 2018 and the 2018 Hokkaido Eastern Iburi Earthquake and which were
designated by the NTA.
Afterwards, while the measure to extend the deadline was terminated area by area, based on the post-disastersituation of the affected areas, further extensions were offered to people who had difficulty in filing or payment,in response to their application. The NTA strives to respond carefully, considering the individual circumstances of
the affected people.
Moreover, to assist those who have suffered from the Great East Japan Earthquake, the NTA has developeda system for providing appropriate consultations to those who are taking refuge at their nearest Tax Offices.
The NTA continuously endeavors to disseminate systems, answer inquiries from taxpayers, and so on as well as
provide consultations while giving adequate consideration to their circumstances and emotions.

Remedy for
Taxpayer Rights

Principal tax treatments applicable to those who suffered damage from these disasters● The taxpayer may extend the deadline for filing or payment, and postpone tax payment for a certain period.
● The taxpayer may benefit from reduced taxes or postponement of payment, even during the stages of an
estimated income tax prepayment or income tax withholding.
● Should the taxpayer suffer damage to its home or belongings, the taxpayer may reduce its income tax throughcasualty loss deduction methods determined in the Income Tax Act or methods of tax reduction or release
determined in the Act on Reduction or Release, Deferment of Collection and Other Measures Related to Tax
Imposed on Disaster Victims.

LiquorAdministration

Publicity about taxation measures relating to disasters

The NTA has provided information and publicity about taxation measures with the people affected by disasters
through its website, Twitter and other methods, soon after the occurrence of disasters.
For other measures and details, see the NTA website The Disaster related information (https://www.nta.
go.jp/taxes/shiraberu/saigai/index.htm (in Japanese)).

Ensuring Proper
Administration of Services
by Certiﬁed Public Tax
Accountants (CPTAs)

Evaluation of
Policies
Statistics

The Disaster related information (as of May 2019)

NATIONAL TAX AGENCY REPORT 201916

to Enhance Services for Taxpayers and to Boost
Ⅱ Efforts
Efficiency of Tax Administration
2

e-Tax（online national tax return filing and tax payment system）〜 Strongly promote various measures in order to encourage the use of e-Tax
and submitting all documents including attachment electrically 〜
e-Tax enables users to perform procedures for filing income tax, corporation tax, consumption tax, gifttax, stamp tax and liquor tax returns, as well as submitting statutory records and applying for blue return
filing, etc. via the Internet without visiting the Tax Office. Tax payment can be made via direct payment,
the Internet, Pay-easy1 compatible ATMs, etc.
Use of tax and accounting software compatible with e-Tax enables taxpayers and CPTAs to digitally
carry out the set of work, including accounts processing and reporting, from data preparation to filing,which will reduce paperwork.
The NTA thinks e-Tax also reduces administration work, such as receiving tax returns at the counter orby postal mail and data input, as well as reduces document management costs for tax authorities, thereby
promoting the efficiency of tax administration.
To this end, amid the computerization of the economic society further progressing, the NTA will enhance
the convenience so as to enable taxpayers to perform procedures easily and accurately. At the same time,from the perspective of promoting cost reduction in the whole society and productivity improvement incorporations, the NTA will place emphasis on further promotion of e-Tax and submitting all documents
including attachments electrically.

■ Outline of e-Tax

Users（Prior preparation）● Obtain digital certiﬁcates● Obtain IC card readers/writers

Taxpayers
CPTAs

Internet
Sending data(tax return,application and ﬁling)

Utilizationof dataSending direct
payment information

Enhancing the eﬃciencyof tax administration

Sending
directpayment
information＊Digital signature by the taxpayers
can be omit ted in cases where
CPTAs ﬁle returns online on behalfof the taxpayers.

Financial institution

administrative work ofreceiving tax returns
and data input● Reduction of document

management costs

銀行
×● Reduction of paperwork● Reduction of

Tax payment via
Internet banking● Can complete theprocedure via the Internet
without visiting the Tax
Oﬃce

Sending
informationon completed
payments◎

Improved convenience
for users

Tax Oﬃce

e-Tax

Tax payment via“Pay-easy”
compatible ATMs

（Revenue agencies
for Bank of Japan）

1 “Pay-easy” is a service where taxpayers can pay taxes, public utility charges and other charges through PCs, smartphones/cellular phones or ATMs
without queuing at the counters of financial institutions or convenience stores.

17

NATIONAL TAX AGENCY REPORT 2019

（thousands）
25,00020,00019,56018,33010,17010,170

3,340

3,520

4,590

4,640

5,190

2014

2015

2016

15,0000

11,18012,240

3,870

4,050

9,670

9,270

2017

2018
（Fiscal year）

10,64010,0005,000

25,5603,730

The number of utilization of e-Tax increases steadily■ National tax return procedures that depend on prevalence rate, etc. of
the Public Certification Service for Individuals (2 procedures)※1■ National tax return procedures other than the above (4 procedures)※2■ Application and filing procedures (9 procedures)※3※1 refers to procedures for filing income tax returns and consumption
tax returns (individuals).
※2 refers to procedures for filing corporation tax returns, consumption
tax returns (corporations), liquor tax returns, and stamp tax returns.
※3 refers to withholding records of employment income, etc. (and totalized tables for the same) (6 procedures), payment records ofinterest, etc. (and totalized tables for the same), requests for issueof certificates of tax payment, and notifications of start (changesetc.) using e-Tax.

orts
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EﬀEﬀ
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TaxpayersandBoost
forforTaxpayers
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Boost
Eﬃciency of Tax Administration

18,10024,720

About the NTA■ The number of utilizations of e-Tax

Proper and Fair
Taxation and Collection

Column 2 The NTA will endeavor to increase the convenience of e-Tax
At the NTA, introduction and preparation of the following policies are underway in order to further increase theconvenience of e-Tax.

1⑴

The simplification of the authentication procedure for the use of e-Tax by individual taxpayers
implemented in January 2019

Remedy for
Taxpayer Rights

The use of e-Tax with My Number Card (My Number Card method)
By logging into e-Tax through Mynaportal or from the e-Tax website with My Number Cards, taxpayers may
be able to start using e-Tax more easily.
⑵ The use of e-Tax with IDs and passwords (ID and password method)
In terms of those who do not possess a My Number Card or IC card readers/writers, the taxpayer cantransmit its filing data through e-Tax from the filing assistance on the NTA website, using only an ID andpassword dedicated to e-Tax, issued after in-person identity verification by a staff at the Tax Office.
⑶ Compatibility with smartphones
Wage earners who filed year-end adjustment and will apply for tax deduction for medical expenses or donations can prepare final income tax returns by visiting the filing assistance on the NTA website and using thespecial screen optimized for smartphones, etc.
A prepared return form can be transmitted through e-Tax with an ID and password method. In addition to
the ID and password method, e-Tax transmission by the My Number Card method will become possible afterJanuary 2020*.

LiquorAdministration＊ Available only to smartphones compatible with My Number Card. For the model names of smartphones compatible with My Number
Card, please check the website for Public Certification Service for Individuals by Japan Agency for Local Authority Information Systems (https://www.jpki.go.jp (in Japanese)).

Ensuring Proper
Administration of Services
by Certiﬁed Public Tax
Accountants (CPTAs)

The NTA plans to expand the scope of people who can use the special screen for smartphones into taxpayers
who earn employment incomes from multiple sources or miscellaneous incomes, such as public pensions.

My Number Card
methodAcquisition of a
My Number Card

Preparation and transmissionof tax ﬁling data

Before using e-Tax

When a tax return is ﬁled

(conventional procedures)

Items required when a tax return is ﬁled

My Number
Card

Items required when a tax return is ﬁled

in-person identity
veriﬁcation bya staﬀ at
the Tax Oﬃce
Receipt of an ID and an e-Tax
password which can be used
for ID and password method

Before using e-Tax

Receipt of an ID
and a password

IC cardreader/writer

ID anda password

Preparation and transmissionof tax ﬁling dataan ID and an e-Tax password
which can be used
for ID and password method

When a tax return is ﬁled

Items required when a tax return is ﬁled

Statistics

Methods other than
the above

When a tax return is ﬁled

Evaluation of
Policies

Before using e-Tax

ID and password
method〜 Conceptual diagram of the use of e-Tax by individual taxpayers after January 2019 〜

ID anda password

Acquisition of a
My Number Card

Submission ofan application ofstart using e-Tax

Preparation and transmissionof tax ﬁling data

My Number
Card

ID anda password

IC cardreader/writer

1 “Mynaportal” refers to a portal site, newly created when the My Number System was adopted, which each and every citizen may have access to.

NATIONAL TAX AGENCY REPORT 201918

to Enhance Services for Taxpayers and to Boost
Ⅱ Efforts
Efficiency of Tax Administration
2

Increase the convenience for e-Tax use by corporate taxpayers

In tandem with the mandatory requirement for large enterprises to file tax return online (refer to Column 3),
the NTA has advancing preparations of an environment that for corporate taxpayers enables smooth online
submission of filing data pertaining to corporate taxes.
⑴

Reduction in the amount of information requiring submission【implemented in April 2018】
Regarding documents prepared by third parties, such as the certificate related to expropriation of land,
which are required to be attached to a final tax return, the NTA accepts the application of the system if such
documents are retained instead of being attached to the return form.

⑵

Acceptance of various data formats【planned for implementation after May 2019】
Out of attached forms, portions that require detailed descriptions, account heading breakdown statements
and financial statements can be submitted in the CSV form.

⑶

Increase in number of options for submission【planned for implementation by April 2020】
Submission of attached documents in the form of optical disk will be accepted.

⑷

Centralized destination for submission (ʻonce only policyʼ)【planned for implementation by April 2020】
When financial statements are submitted through e-Tax in filing a corporation tax return, the submissionof financial statements in filing a corporation enterprise tax return can be omitted due to coordination in
information between national and local tax offices.

⑸

The simplification of the authentication procedure for the use of e-Tax【implemented in April 2018】
When the corporate taxpayer files using e-Tax, transmission of the representative s digital signature is nolonger necessary, as long as the digital signature and digital certificate of the individual (restricted to a director
or employee of the corporate taxpayer) who has been appointed by the representative of the corporate taxpayer is sent.

＊ For details of each item, see the e-Tax website (http://www.e-tax.nta.go.jp/hojin/gimuka/index.htm (in Japanese)).

3

4

Further expansion of e-Tax reception hours【Implemented in January 2019】

The e-Tax reception hours have been expanded to be 24 hours every day during the period for filing tax
returns and 24 hours on weekdays outside the period for filing tax returns including the final Saturday and thefollowing Sunday each month.

Enlargement of the transmission capacity of e-Tax【Implemented in January 2019】

The transmission capacity of e-Tax per transmission has been increased twice as much as the current one(20MB) for return forms and about five times as much as the current one (8MB) for attached documents.

5 e-Tax adaptation to inheritance tax filing【planned for implementation after October 2019】
Inheritance tax will be eligible for filing through e-Tax.

6

Simplification of filing procedures utilizing electrical reduction certification, etc【implemented afterJanuary 2018】

Through improvement of filing assistance on the NTA website, when applying for deduction for insurance
premiums, deduction for earthquake insurance premiums, deduction for the donation and deduction for
medical expenses for income tax, the electronic data such as deduction certification, provided by the insurancecompany, may be sent as attachment to the final tax return data when submitting the final tax return throughe-Tax.

Column 3 Large enterprises will be required to ﬁle returns via e-Tax
With increasing degree of ICT in the economic society, submission of final tax returns and such by large enterprises(for domestic corporation only) which fulfill certain conditions, such as capital or contribution exceeding
100 million yen, will be required to submit online, including attachments such as account heading breakdown
statements, beginning April 1, 2020, from the perspective of reduction of cost to overall society and promotionof efficiency enhancement. The NTA is committed to preparing adequate conditions to enable smooth online
submission of filing data pertaining to corporate taxes (Taxpayers other than large corporation can also use this).

■ Overview of the system
1

Subject tax category and procedure
Submission of final tax return, including corporate tax and local corporate tax as well as consumption
tax and local consumption tax

2Large enterprises● Corporate entities whose capital or contribution exceeds 100 million yen at the beginning of the businessyear● Mutual companies, investment corporations and special purpose companies, national and local governments＊ For concrete details, see the e-Tax website (http://www.e-tax.nta.go.jp/hojin/gimuka/index.htm (in Japanese)).

19

NATIONAL TAX AGENCY REPORT 2019

Filing for tax return

About the NTA

3〜 The number of taxpayers who filed income tax returns totaled 22.22 million.
More than half filed for tax refunds 〜
Tax filing is a procedure, in which the taxpayer calculates income and tax amount for a one year period,orts
Enhance
Services
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orts
toto
Enhance
Services
TaxpayersandBoost
forforTaxpayers
and
toto
Boost
Eﬃciency of Tax Administrationand files and pays taxes. Not only persons obligated to file, but also those who obtain tax refunds file
tax returns, for example, because they paid large medical expenses. 22.22 million people filed theirincome tax and special income tax for reconstruction (hereinafter referred to as income taxes, etc ) for
2018; thus, one out of six residents filed tax returns. Of these, over 13.06 million people filed for refunds,
comprising over half of the people filing tax returns.

Proper and Fair
Taxation and Collection■ Trend of the number of income tax return filers（millions）
25

20

15

Remedy for
Taxpayer Rights

10

Since 1999, the number of taxpayers who ﬁled tax returns
totaled to over 20 million.

5

0‘67 ‘68 ‘69 ‘70 ‘71 ‘72 ‘73 ‘74 ‘75 ‘76 ‘77 ‘78 ‘79 ‘80 ‘81 ‘82 ‘83 ‘84 ‘85 ‘86 ‘87 ‘88 ‘89 ‘90 ‘91 ‘92 ‘93 ‘94 ‘95 ‘96 ‘97 ‘98 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18（year）

Various services are provided to meet with various needs of taxpayers

LiquorAdministration➡Implemented systems to enable easy and convenient filing process⑴ Promotion of filing using ICT〜 Filing assistance on the website and e-Tax 〜

Ensuring Proper
Administration of Services
by Certiﬁed Public Tax
Accountants (CPTAs)

The NTA promotes filings using ICT from home, etc, such as filing assistance on the NTA website ande-Tax.
＊ Taxpayers visiting consultation sites of Tax Offices can use the PCs for filing assistance on the NTA website to prepare tax returns and to transmit
them using e-Tax, experiencing the convenience of filing using ICT.

■ Filers who used ICT to file an income tax return
Number of ﬁlers using ICT

Evaluation of
Policies（thousand people）
25,00023,150

Number of ﬁlers not using ICT

21,853

21,52521,434

21,391

21,515

21,69021,97722,218

11,163

10,453

9,796

9,299

8,908

8,333

7,636

6,907

20,00012,75415,000The users of ICT increased 1.5 times in 8 years.

5,000

0

10,396

10,69011,071

11,63812,093

12,606

13,35814,342

15,311

2010

2011

2012

2013

2014

2015

2016

2017

2018（year）

NATIONAL TAX AGENCY REPORT 2019

Statistics

10,00020

to Enhance Services for Taxpayers and to Boost
Ⅱ Efforts
Efficiency of Tax Administration〜 The number of users of filing assistance on the website is increasing each year 〜With the filing assistance on the NTA website, if a taxpayer enters the amounts and other necessary
information according to the guidance on the PC screen, income amounts and tax amounts areautomatically calculated, and it allows taxpayers to complete their tax returns accurately for income
tax, etc. consumption tax and local consumption tax for sole proprietors, and gift tax, as well as financial
statements for blue returns.
e-Tax can be used to file the prepared data directly or it can be printed and submitted to the Tax Officeby post, etc.
In the filing period for 2018, the number of people who submitted tax returns for income tax etc.
prepared with filing assistance on the NTA website reached 10.36 million cases including those prepared
via PCs set up at consultation sites. This comprised about 47% of all people who submitted returns.
Of the 10.36 million cases which were prepared using the filing assistance on the NTA website,
approximately 370,000 were prepared through smartphones.
We will continue our efforts to improve the system to make it easier to use based on feedback fromusers, so that it can be used by as many taxpayers as possible.

■ Trend in income tax return submissions prepared in filing assistance on the NTA website（thousand people）

The use of ﬁling assistance on the NTA website increased
by approximately 15 times in 14 years.

10,000

Persons ﬁling tax returns (website)
Persons ﬁling tax returns (Tax Oﬃce)

8,000

6,144

6,000
4,692
4,000

3,370
1,924

2,000
0

1,323
695

602

2004

2005

2006

2,637

10,356

8,812

9,132

3,524

3,853

4,260

4,682

5,265

5,981

4,878

4,994

4,959

4,872

4,747

4,663

4,375

2012

2013

2014

2015

2016

2017

2018
（year）

7,794

7,902

8,127

2,837

3,060

3,249

4,957

4,842

2010

2011

8,518

2,336

1,927

1,705
1,664

7,297

9,928

9,429

2,765
2007

3,808

2008

4,660

2009

＊ Figures represent those submitted by the end of March of the following year.
The use of filing assistance on the NTA website at PCs installed in the Tax Office started from tax returns for 2004. However, the numberof taxpayers who submitted returns using this method remains unaccounted for.
The number of taxpayers who submitted tax returns for years before 2003 remains unaccounted for.
The number of taxpayers who submitted tax returns for years since 2007 includes cases using e-Tax.

⑵ Response to diverse taxpayer needs〜 Opening tax office on Sunday during filing period 〜
Taxpayers said that Itʼs a problem that filing consultations can only be handled on weekdays; I would
like it if they were also provided on days when the Tax Offices are closed. In response, the NTA receives
tax returns and provides filing consultations on two Sundays during the tax return filing period at someTax Offices, and at joint meeting sites outside the Tax Offices.
For the 2018 tax return filing period, the offices were open on February 24 and March 3, 2019, during
which 290,000 final income tax returns were filed.

Cooperation with the local government
In an effort to simplify taxpayer filing procedures, the NTA is working on achieving close cooperation between
the NTA and the local government. On the system aspects, for example, in the case of income tax filings, there isno need to file for individual enterprise tax and individual inhabitant tax, which are local taxes.
Also, on the implementation aspects, income tax filing data and other data are mutually provided between
national government and local public bodies. Such actively increased use of ICT is an effort to boost efficiency andreduce the costs of administrative operations of national government and local government.

21

NATIONAL TAX AGENCY REPORT 2019

Diversification of payment methods

About the NTA

4〜 Enhanced taxpayer services by offering various payment methods 〜
To enhance taxpayer services, diverse payment have been introduced; such as Cashless payment suchorts
Enhance
Services
EﬀEﬀ
orts
toto
Enhance
Services
TaxpayersandBoost
forforTaxpayers
and
toto
Boost
Eﬃciency of Tax Administration

as online payment using Direct payment and Internet banking, Credit card payment and payment atconvenience stores, instead of paying at the counters of financial institutions and Tax offices in cash withtax payment slips. Additionally, beginning January 2019, taxpayers are able to pay at convenience store
using a QR code.
Taxpayers can also use transfer tax payments from a deposit account for income tax and sole proprietorsʼ
consumption tax.

Proper and Fair
Taxation and Collection

Direct payment（direct type online payment of national tax）

Remedy for
Taxpayer Rights

Direct payment is a procedure that enables taxpayers to pay tax by simple operation after filing tax returns
digitally by e-Tax, by submitting an application indicating bank account information in advance.
Direct payment can only be used at bank accounts held at financial institution which is compatible with direct
payment. This is why the NTA is working to expand the number of financial institutions in which direct payment
can be used, for example by requesting that non-compatible financial institutions become compatible. As of theend of March 2019, it was usable in 425 financial institutions.

Online tax payment using Internet banking

LiquorAdministration

National taxes can be paid online through Internet banking and ATMs of financial institutions that accept
payment with Pay-easy.
To pay taxes online using Internet banking, etc., taxpayers are required to submit an application of start using
e-Tax beforehand.

Ensuring Proper
Administration of Services
by Certiﬁed Public Tax
Accountants (CPTAs)

Payment with credit card
Credit card payment is a payment procedure by inputting necessary information on the National Tax Credit
Card Payment Site on the Internet by PC or smartphone.
The tax amount that can be paid with a credit card is less than 10 million yen and should be within the payment
limit of the credit card to be used.
Taxpayers must pay for handling charges for credit card payment in accordance with the tax payment amount(handling charges are not national revenue).

Evaluation of
Policies

Payment at convenience stores

Statistics

By printing at home a QR Code that embodies information required to complete payment of taxes, taxpayers
are able to pay taxes at the cash register of convenience stores after scanning the QR Code at kiosk terminals (i.e.,
Loppi and FamiPort ) located within the stores. Taxpayers may also complete the payment at convenience
stores using the bar coded payment slips issued by the jurisdictional Regional Taxation Bureau or Tax Office which
are used to inform the taxpayer of scheduled income tax payments and finalized tax payment amounts prior to
the payment deadline.
The maximum amount of taxes payable at convenience stores is 300,000 yen.
(Note) QR Code is a registered trademark of DENSO WAVE INCORPORATED.

NATIONAL TAX AGENCY REPORT 201922

to Enhance Services for Taxpayers and to Boost
Ⅱ Efforts
Efficiency of Tax Administration
5

Efforts toward the Social Security and Tax Number System（My Number System）⑴ Outline of My Number System
My Number System is the social infrastructure to improve administrative efficiency, enhance publicconvenience, and realize a fairer and more just society.
Upon the introduction of My Number System, the NTA acts as an entity assigning Corporate Numbers
and also as an entity utilizing My Numbers (Individual number) and Corporate Numbers.

A fairer and morejust society

Because it will make it easier to ascertain
people s income and receipt of otheradministrative services, the system will prevent
improper evasion of payment responsibility andunfair receipt of benefits, and provide fine-tuned
assistance to those who really need it.

Improved administrative
efficiently

The system will greatly save time and laborneeded to compare, transcribe, and input
various types of information in administrative
organizations, local governments, etc.
It will promote linkage among multiple
operations and eliminate waste arising fromwork overlap.

Enhanced public convenience

The system will simplify administrative
procedures and lessen the burden in residents
by reducing the number of accompanying
documents, etc., needed for procedures.
It will allow residents to check theinformation on them that administrative
organizations possess and receive notices on
various services from those organizations.

（Source：Cabinet Office, Government of Japan website (https://www.cao.go.jp/bangouseido/foreigners/english.html））① My Number（Individual number）
My Number is a 12-digit number which has been designated to anyone holding residential registration.
The use of My Number is limited to the procedures prescribed by law or municipal regulations, such asprocedures in the fields of social security, taxation, and disaster response.

② Corporate Number
Corporate Number is a 13-digit number to each corporation, such as stock companies.
Corporate Number is available to anyone, unlike My Number.

⑵ Actions as an entity utilizing My Numbers and Corporate Numbers〜 Utilization in the national tax field 〜
An individual or corporation has to fill in the Number (My Number or Corporate Number) on the filingform and statutory statements each time they submit to the tax authority.
When My Number is provided, it is necessary to confirm the identity of individuals based on Act on
the Use of Numbers to Identify a Specific Individual in the Administrative Procedure to prevent identity
fraud. Therefore, the NTA enact a notice that establishes specific procedures to confirm the identity of
individuals in the national tax field.

23

NATIONAL TAX AGENCY REPORT 2019

About the NTA〜 Improving convenience for taxpayers 〜

orts
Enhance
Services
EﬀEﬀ
orts
toto
Enhance
Services
TaxpayersandBoost
forforTaxpayers
and
toto
Boost
Eﬃciency of Tax Administration

Taking the opportunity of the introduction of My Number System, attaching a copy of a certificate
of residence can be omitted in a filing procedure to claim for housing loan tax credit from 2016, andstoring information from e-Tax s message box in the Notice section of the Mynaportal1, which allows
centralized access to information from all administrative organizations from 2019, for those transmitted
filing data of income tax, consumption tax or gift tax.
The NTA is examining ways in which to collaborate with related organizations to construct a schemethat enables simple filing by automatically transferring data, such as deduction certificates, whichwere collectively obtained through the Mynaportal into the filing assistance on the NTA website andautomatically completing the form.*＊ The NTA is looking into introducing a similar system with the Year-End Adjustment Deduction Declaration Preparation Software (software thatwill support simple and accurate preparation of deduction declaration form through the use of deduction certificates electronically issued to
employees by insurance firms, etc., and electronic submission to the employers during the year-end adjustment process) that is being developedby the NTA.

Proper and Fair
Taxation and Collection〜 Recognizing income more properly and efficiently 〜
In the field of national taxes, as numbers will be required on documents such as declaration form andstatutory statements, the NTA expects that name-based aggregation of statutory statements and matchingwith declaration form will become more accurate and efficient, and, in turn, income will be recognized
more accurately. Therefore, we believe that the number will lead to more proper and fair taxation.

Remedy for
Taxpayer Rights〜 Conducting public relations activities 〜
To facilitate the establishment of My Number System, the NTA is actively conducting public relations by
various tools; such as publishing FAQ through a special site regarding My Number System on its website,a briefing session held for the relevant private sectors, industrial associations, etc., and newspapers andInternet advertising in cooperation with the relevant ministries and agencies.

LiquorAdministration

Latest information and inquiries on the Social Security and Tax Number System●The Cabinet Oﬃce website for the Social Security and Tax Number System
https://www.cao.go.jp/bangouseido/foreigners/english.html●Call Center for the Social Security and Tax Number System (Multilingual Service)

Ensuring Proper
Administration of Services
by Certiﬁed Public Tax
Accountants (CPTAs)

0120 - 0178 - 26（Toll Free）

Available from 9:30 am until 8 pm on weekdays and until 5:30 pm on weekends and holidays(Excluding December 29 to January 3)＊ Response to request for temporary suspension of My Number Card due to loss or theft will be available 24
hours, 365 days.

Latest information on the Social Security and Tax Number System pertaining to national taxes

Evaluation of
Policies●The NTA website“Social Security and Tax Number System”.
https://www.nta.go.jp/taxes/tetsuzuki/mynumberinfo/index.htm (in Japanese)●The NTA website“the NTA Corporate Number Publication Site”
https://www.houjin-bangou.nta.go.jp/en●Inquiries about designating Corporate Number, sending a written notice, and how touse“the NTA Corporate Number Publication Site”.
the Oﬃce of Corporate Number Management at the NTA

0120 - 053 - 161（Toll-Free）
Statistics

Available from 8:45 am until 6 pm on weekdays (not available on weekends, holidays, andDecember 29 to January 3)

1 Mynaportal refers to a portal site that was newly set up when the My Number System was introduced, which is accessible by each and every
national citizen.

NATIONAL TAX AGENCY REPORT 201924

to Enhance Services for Taxpayers and to Boost
Ⅱ Efforts
Efficiency of Tax Administration⑶ Actions as an entity assigning Corporate Number〜 Assigning Corporate Numbers 〜
The Corporate Number is designated to ① corporations registered for incorporation, such as stockcompanies, ② national government organizations, ③ local public entities, or ④ corporations or associations
without juridical personality, etc., or other than those listed in ① through ③, those submitted a Notificationof Establishment of a Salary-Paying Office , etc. The NTA designates a Corporate Number based on theregistration information provided by the Ministry of Justice or notification submitted to the Tax Office, andalso sends the Notification of the Corporate Number.
The NTA publishes the three types of basic information (⒤ trade name or name, (ii) address of head
office or principal place of business, and (iii) Corporate Number) on the corporation which designatedCorporate Numbers on the Internet (the NTA Corporate Number Publication Site (https://www.houjinbangou.nta.go.jp)).
＊ Corporations and associations without juridical personality other than those mentioned above may still be designated a Corporate Number by
notifying the NTA Commissioner if they meet certain requirements.

〜 Promoting the utilization of Corporate Number 〜
The Corporate Number has no limit on their range of use, and it is important to utilize them in broad
fields as a part of the social infrastructure. Cooperating with relevant ministries and agencies, the NTA
is striving to explain the system and to encourage the utilization of the system by national and local
administrative agencies and private organizations.

〜 Initiatives to enhance convenience of the NTA Corporate Number Publication Site 〜
The three types of basic information on the corporations may be searched for on the NTA Corporate
Number Publication Site, referencing the Corporate Number,trade name or name or address . Also,

the site offers Data Download function and Web-API function1 in order to enable users ease-of-use of
information, such as the Corporate Number.
In April 2018, the NTA started to publish furigana (Japanese pronunciation) of trade names or names inorder to make it easier for corporations to utilize these information as digitization and networks continue
to expand.
In addition, during FY2018, functions were added with the aim to enhance reliability of data provided,such as those to remove corporations whose registered addresses of head offices are indicated in a form
that no longer exists due to abolishment of addresses for reason of city-lot readjustment, etc.

〜 Initiatives for the boost of international utilization of Corporate Numbers 〜① The registration as an issuing agency based on international standards
The NTA is registered as an issuing agency with the United Nations (UN) and the International
Organization for Standardization (ISO), and has obtained issuing agency codes . Corporate Numbers canbe used as a unique gratuitous corporation code in international distribution (e.g., electronic commerce)
when issuing agency code and corporation code (Corporate Number) are used in combination.

② Opening of the NTA Corporate Number Publication Site (English Version)
While economic transactions are being internationalized, there are increasing opportunities to use
corporation names and addresses in English. In order for Corporate Numbers to be used more widely, theEnglish version of the NTA Corporate Number Publication Site (https://www.houjin-bangou.nta.go.jp/en/)
was established in April 2017, and trade names or names and the addresses of head offices or principle
places of business in English are published upon requests from corporations.
1 Web-API (Application Programming Interface) refers to an interface that connects different systems in order to exchange information that meetsspecified criteria by sending simple requests through the Internet from a system constructed by the user.

25

NATIONAL TAX AGENCY REPORT 2019

Promotion of adoption of procedures online and Business Process Reengineering（BPR）
1

About the NTA

6〜 Working towards realization of a Digital Government 〜
The environment surrounding tax administration has been going to dramatic changes, such as complication

orts
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toto
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and
toto
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Eﬃciency of Tax Administrationand integration business, as economic transaction is complicated and integrated and economic society isinternationalized and highly informed.
Under such circumstances, with the Declaration to be the Worldʼs Most Advanced IT Nation: Basic
Plan for the Advancement of Public and Private Sector Data Utilization (Cabinet decision in June 2018)
which aims to realize a society in which citizens may live with security and reassurance, and experienceprosperity by establishing a simple and efficient social system that utilizes IT to their fullest extent, the NTA
will take firm steps to further initiatives towards 30% reduction of operating cost by FY2021 concerning

Proper and Fair
Taxation and Collection

information systems, such as the KSK (Kokuzei Sogo Kanri) system and e-Tax.
Furthermore, the NTA will conduct a deep dive into the area of electronic administration, which isone of the priority areas of the said plan, and with respect to various plans, such as the detailed Digital
Government Action Plan (decision by the Digital Government Cabinet meeting in July 2018), it will enforce
strict implementation of Business Process Reengineering (BPR), including online processing of various
tax related procedures including attachments, and the total abolition of attachments, while promoting

Remedy for
Taxpayer Rights

concrete examination of the realization of online and one stop completion of Social Insurance and Tax
Related Process Executed by Corporations for Its Employees and Process to Establish Corporations inaccordance with the process guideline of the overall government as a member of related government
agencies.2

Ensuring stability and reliability of ICT system and information security

LiquorAdministration
Ensuring Proper
Administration of Services
by Certiﬁed Public Tax
Accountants (CPTAs)

Since the national tax-related operations are closely connected to public rights and obligations, failure in its ICT
system is likely to have a large impact on citizens and impair the credibility of tax administration. Therefore, the
NTA is working to maintain stable operation of ICT systems by regularly updating ICT equipment.
Also, since the NTA holds and accumulates large amounts of taxpayer information, it takes great care for theprevention of its improper use and leakage. For instance, the NTA allows its officials to use only the necessary
information for their work, and the NTA physically disconnects officials PCs that access taxpayer information fromthe Internet. The NTA also conducts security audits regularly.
At the computer center which stores data for e-Tax and the KSK System, the NTA built an information security
management system (ISMS)3 which complies with international standards, and in 2007, obtained certification
based on the ISMS compliance evaluation system (certification based on ISO/IEC27001: 2005 and JISQ27001:
2006)4, and regularly renews the certification afterward.

Evaluation of
Policies

1 “Business Process Reengineering (BPR) means a fundamental reform of existing organizations and business rules, and a redesign of duties, work
flow, administrative mechanisms, and information systems from a process viewpoint.

Statistics

2 The online and one-stop completion of Social Insurance and Tax Related Process Executed by Corporations for Its Employees refers to theinitiative to bring social insurance and tax related procedures carried out by corporations (employers) that accompany life determining events,
such as hiring and retirement of employees that used to require submission of documents to each administrative organizations, in an online and onestop manner through the use of Mynaportal. The initiative aims to construct a scheme in the future which will enable corporations to complete
submission of various information to administrative organizations using a cloud service.
The online and one-stop completion of Process to Establish Corporations refers to the initiative to realize a service which enables a user to complete various procedures through the Mynaportal online in a one-stop manner, which would otherwise require submission of documents to eachadministrative organization when setting up a corporation.
3 An Information Security Management System (ISMS) is an organizational initiative to implement the planning, operation, review and improvement
which are required in order to maintain a situation of appropriate management for confidentiality and completeness and usability of information
assets which should be protected.
4 ISO/IEC27001: 2005 is one of the standards created by the International Organization for Standardization. This became a global standard for
information security management systems in October 2005. JISQ 27001:2006 is a Japanese domestic standard published in May 2006, corresponding
to ISO/IEC27001.

NATIONAL TAX AGENCY REPORT 201926

to Enhance Services for Taxpayers and to Boost
Ⅱ Efforts
Efficiency of Tax Administration
Kokuzei Sogo Kanri (KSK) System
The KSK System, which links all Regional Taxation Bureaus and Tax Offices, is a computer system to facilitate
sophisticated and efficient administration by centrally managing information across the area and the type of tax.

Tax Oﬃce
OCR entry of tax return【OCR Equipment】

Taxpayers / CPTAs【PC】

SapporoTax
returns

Sendai

OnlineKanazawa

OnlineKanto-Shinetsu
Tokyo
NagoyaHiroshima
Osaka
FukuokaTakamatsu
Okinawa oﬃce

Kumamotoe-Tax

Computercenters

Strict Management of Information
The NTA retains various information, such as income data of individuals, and strict management of informationof personal information and taxpayer information is required, since should these information leak out without
challenge, cooperation from taxpayers cannot be expected, disrupting smooth execution of examinations andcollection of taxes.
For this reason, should a tax official leak confidential information obtained through a tax examination, etc., criminal punishment based on tax laws (up to two years in prison or a fine of up to 1 million yen) that is more serious
than penalty defined by the National Public Servant Law (up to a year in prison or a fine of up to 500,000 yen)will be sentenced.
In terms of the tax officials, in addition to the regularly scheduled training on information security which they are
required to attend, they are also informed so that certain locations, such as storefronts and entrances, be avoided
for questionings during an examination in consideration of the taxpayerʼs privacy.
Since the NTA handles Specific Personal Information (personal information which contains My Number), withrespect to the aim of related laws and regulations, such as the My Number Law, it strives to exercise control of
taxpayer information held by the NTA in a strict manner, such as through regular inspection of the condition inwhich administrative documents are archived and managed.

27

NATIONAL TAX AGENCY REPORT 2019

Proper withholding tax system operation

About the NTA

7〜 Providing information and publicity to withholding agents 〜
In the withholding tax system, withholding agents finalize the taxation process by doing year-end

orts
Enhance
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orts
toto
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TaxpayersandBoost
forforTaxpayers
and
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Boost
Eﬃciency of Tax Administration

adjustments, which eliminate the procedures for tax returns for a large portion of the over 50 million wage
earners. The withholding tax system is as important in tax administration as the self-assessment system.
To have withholding agents properly process withholding tax procedures and pay taxes, the NTA
provides information and publicity about the withholding tax system by holding briefings about year-end
adjustment, distributing guidebooks and pamphlets, etc.

Actions taken for the amended Consumption Tax Act

Proper and Fair
Taxation and Collection

8⑴ The reduced tax rate system〜 Provision of information and publicity about the reduced tax rate system for
consumption tax 〜

Remedy for
Taxpayer Rights① Outline of the reduced tax rate system
From the perspective of paying consideration to the low income bracket, the reduced tax rate systemfor consumption tax is to be implemented along with the raising of consumption tax rate scheduled on
October 1, 2019.

Consumption tax rates

The standard tax rate is 10% (consumption tax rate of 7.8% and local consumption tax rate of 2.2%)
The reduced tax rate is 8% (consumption tax rate of 6.24% and local consumption tax rate of 1.76%)

Items subject to the
reduced tax rate

① Food and drink excluding alcoholic drink and dining out② Newspapers issued more than twice a week (those based on subscriptions)

LiquorAdministration■ Consumption tax rates and items subject to the reduced tax rate

Ensuring Proper
Administration of Services
by Certiﬁed Public Tax
Accountants (CPTAs)■ Scope of food and drink subject to the reduced tax rate

《Scope of food and drink subject to the reduced tax rate》
Subject to the
reduced tax rate

Food and drink

Subject to thestandard tax rate

Evaluation of
Policies（food provided in the Food Labeling Act）

that used for human consumption
Alcoholicdrink

Catering, etc.
Take away,
Food delivery, etc.

Restaurant

Provision offood and drink at
at fee-charging
retirement
homes, etc.

Medical andpharmaceuti cal products,
quasi-drugs, etc.

Statistics

Linked goods *( )Dining out＊ Certain linked goods are considered as food and drink

NATIONAL TAX AGENCY REPORT 201928

to Enhance Services for Taxpayers and to Boost
Ⅱ Efforts
Efficiency of Tax Administration② Entry in ledgers, description on invoices and the storing of these documents⑴ A business operator generating sales of, or purchasing, any items subject to the reduced tax rate is to
issue an invoice, etc. and perform accounting such as book entries (separate accounting) adding tax
rate-based separations to existing statement items.
⑵ A requirement for purchase tax credit is currently storing ledgers, invoices, etc. After the reduced
tax rate system is implemented, business operators will be required to store ledgers, invoices, etc. inaccordance with the separate accounting (the method of storing invoices with classified descriptions).
⑶ Starting October of 2023, the method of storing eligible invoices (so-called invoice system) will be
introduced. Preservation of invoice such as eligible invoices1, will become the requirement forpurchase tax credit, instead of storage of separate statement invoices, etc. (the method of storing
eligible invoices).

■ Schedule of changing the method of purchase tax credit
October 1, 2019

Current
procedure

October 1, 2023

The method of storing invoiceswith classified descriptions

The method of storing
eligible invoices

October 1, 2021
Beginning of registration■ Entry in ledgers and descriptions on invoices
Entry

Effective period・Name of invoice issuer
・Date, month and year
・Transaction description
・Price・Name of the invoice recipient〜September 30, 2019

The method of storing
invoices(Current procedure)

Invoices・The product is an items
subject to the reduced tax rate
・Tax-inclusive prices
totaled according to different tax
rates

October 1, 2019〜

The method of storing
invoices with classified
descriptions

October 1, 2023〜

The method of storing
eligible invoices

・Registration number
・Consumption tax
amounts and applicable tax rateaccording to different tax rates

Ledgers

・Name of the taxable
purchase supplier・Date, month and year
・Transaction description
・PriceThe method of storing
invoices(Current procedure)

The method of storing
invoices with classified
descriptions

The method of storing
eligible invoices

・The product is an items
subject to the reduced tax rate

1 Businesses that are allowed to issue eligible invoices are limited to taxable businesses that have been registered after applying with the District
Director of the tax office (businesses allowed to issue eligible invoice). Registration will begin on October 1, 2021.

29

NATIONAL TAX AGENCY REPORT 2019

About the NTA③ Information and public relations about the reduced tax rate system for
consumption tax
Under the reduced tax rate system, in addition to the need to make entries of sales and purchases
classified according to different tax rate, issuance and storage of invoices corresponding to multiple tax
rates will be required, these paperwork will impact many businesses, needless to say those businesses
that handle items that are subject to the reduced tax rate, but also those that do not sell items subject toorts
Enhance
Services
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Services
TaxpayersandBoost
forforTaxpayers
and
toto
Boost
Eﬃciency of Tax Administration

the reduced tax rate and tax exempt businesses that have no obligation to pay consumption tax.
The NTA is taking measures for providing information and consultation on the content of revision in close
contact and cooperation with relevant ministries and private organizations so that business operators canfully understand the reduced tax rate system for consumption tax.

Proper and Fair
Taxation and Collection● Publication and revision of Q&As with explanations based on specific cases about items
subject to the reduced tax rate
● Meetings held in locations across the country for business operators to ensure fullunderstanding of the reduced tax rate system● Setting up a reduced consumption tax rate telephone counseling center (reduced tax call center)0120-205-553

Remedy for
Taxpayer Rights

Available from 9 am until 5 pm on weekdays (not available on weekends, holidays, and New
Year holidays（December 29 to January 3）● Setting up a guidance exclusively for the reduced tax rate at an existing telephone counselingcenter● Provide consultations on the reduced tax rate system at the revised consumption tax system
consultation desk at each Tax Office● Opening of a special site of the reduced tax rate system on the NTA website

LiquorAdministration＊ Please visit the special site on the NTA website About the Reduced Tax Rate System for Consumption Tax(https://www.nta.go.jp/taxes/shiraberu/zeimokubetsu/shohi/keigenzeiritsu/index.htm (in Japanese)).

● Release of video via the official NTA website which provides an overview of the reduced tax
rate system (Web-TAX-TV)

Ensuring Proper
Administration of Services
by Certiﬁed Public Tax
Accountants (CPTAs)⑵ Measures for smooth and appropriate shifting of consumption taxes〜 Provision of consultation on price shifting and the guidance to liquor business
operators 〜With the aim of ensuring the smooth and appropriate shifting of consumption taxes, the Act on Special
Measures for Shifting Consumption Taxes (hereinafter referred to as the Special Measures Act ) prohibits

Evaluation of
Policies

refusal to shift consumption taxes and price indication that interferes with said shifting. The Act also
provides exceptions for the obligation to indicate the total price with tax.
Thus, the NTA endeavors to secure smooth and appropriate shifting of consumption taxes through thefollowing measures:● Publication of the detailed examples of misrecognition prevention measures, which are required for the applicationof exceptions for the obligation to indicate the total price with tax

Statistics● Consultation on price indication (exceptions from the obligation to indicate the total price with tax), as well as on
the shifting of consumption taxes at the revised consumption tax systemsʼ consultation desk at Tax Offices● As the government agency with jurisdiction over the liquor industry, the NTA provides liquor business operatorswith the necessary guidance and advice to prevent and correct any acts that violate the provisions of the Act
on Special Measures for Shifting Consumption Taxes, and if any liquor business operator performs an act that
refuses the shifting of consumption taxes or makes an indication that consumption taxes are not shifted, the NTA
conducts an on-site inspection promptly.

NATIONAL TAX AGENCY REPORT 201930

to Enhance Services for Taxpayers and to Boost
Ⅱ Efforts
Efficiency of Tax Administration

Column 4 Corresponding to the New Tax Measure for the Succession to Businesses
1

Outline of the revision

The Tax Measure for the Succession to Businesses is a system in which payment of gift tax or inheritance tax isdeferred under a certain set of conditions in case the successor to a business was gifted with shares or inherited
shares from the previous business owner of an unlisted company that has been certified by a prefectural governor.
Under the FY2018 tax reform, in order to promote intensive subrogation as the aging of small and medium
enterprise proprietors progresses (see Reference ), a special measure valid for duration of 10 years, was established, including removal of restriction of shares of unlisted companies that are eligible for the tax deferral (maximum two thirds of capital stock) and increase of ratio of deferrable tax (80% to 100%).
【Outline of the FY2018 tax reform】
Drastic alleviation of entry requirement【Conventional policy】

Maximum of two thirds ofcapital stock is subject【Special measure】
Entire capital stock
is subject

Up to 80% is subject todeferralUp to 100% issubject to deferral

Must maintain 80% of employment
on average over a period of 5 years
after succession

Flexible employment
requirement

Expanded succession
patterns

Drastic relief of burden
after succession“Multiple→Single”“Single→Maximum of three(representatives)”

Tax reduction and exemption
systems adapted to changes
in the business environment

is eligible for the Tax
Measure for the Succession
to Businesses

In case the company is transferred(M&A) or dissolved, tax amount will
be recalculated⇒Reduced concern of future
tax burden(Source) Prepared by editing“FY2018 Tax Reform”pamphlet published by Ministry of Finance（Reference）Aging Population of Small and Medium Enterprise
Proprietors
According to the 2018 White Paper on Small and Medium
Enterprises in Japan, the aging of proprietors is progressing(refer to graph on right), the number of those exceeding the
average retirement age of 70 in the next 10 years is expected
to reach 2.45 million, and a half of these (1.27 million) are
believed to have no successors in plan.
Among these aging small and medium enterprises and small
scale enterprise proprietors are many who possess outstanding
management resources, and promotion of succession of theseenterprises does not simply address the succession challenges
of enterprises, but a serious issue to our nation s economy thatcannot afford any more time before it is addressed.

2

Main priorities

Age distribution of business operatorsof small and medium enterprises（ten thousand people）
25
2005

2010

2000
20

2015

1995
15

10

5

0

The peak of business
operators’ age moves from47 to 66 in 20 years
30～

45～

60～

75 （age）

Source: “2018 White Paper on Small and Medium
Enterprises in Japan (Small and Medium
Enterprise Agency)

As described in the Reference section above, in the context of increasing societal concern regarding the issueof aging of small and medium enterprise proprietors, the Tax Measure for the Succession to Businesses entails
various measures, such as information and public relations, so that taxpayers may carry out the declaration andpayment of taxes equipped with the proper understanding of the content of the revision of the tax system, as wellas the overall scheme of the system and declaration procedures.
⑴

Enhancing the content of NTA website
The NTA has opened on its website a section titled, “Special Feature on Tax Measure for the Succession to
Businesses,” which compiles information related to the Tax Measure for the Succession to Businesses.
Specifically speaking, it contains reference for taxpayers, such as a pamphlet which illustrates the Tax
Measure for the Succession to Businesses in an easy-to-understand manner and examples of common Q&Aʼs.

⑵

Dispatch of instructors to various seminars and training sessions
The Regional Taxation Bureaus and Tax Offices are proactively responding to requests for dispatch of
instructors to seminars and training sessions on the Tax Measure for the Succession to Businesses that are
hosted by related nongovernment organizations.
Instructors have been dispatched to over 400 occasions from Regional Taxation Bureaus and Tax Offices
between April 2018, when the Tax Measure for the Succession to Businesses came into effect, and Decemberof the same year.

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NATIONAL TAX AGENCY REPORT 2019

1

Outline of the system

2

Main priorities⑴

Information and public relations

About the NTA

Column 5 International Tourist Tax

orts
Enhance
Services
EﬀEﬀ
orts
toto
Enhance
Services
TaxpayersandBoost
forforTaxpayers
and
toto
Boost
Eﬃciency of Tax Administration

The International Tourist Tax Act was created as part of the FY2018 tax reform and went into effect on January
7, 2019.
With the purpose to secure funding to enhance and reinforce our foundation for tourism as one of the measures
towards becoming an advanced sightseeing nation, travelers will be imposed 1,000 yen per departure, and income
generated from this tax will be applied towards: 1. Preparation of an environment that enables travel in a stressfree and convenient manner, 2. Enabling easy access to information concerning our nationʼs various attractions, 3.
Enhancing travelersʼ level of satisfaction from stays at local regions through preparation of tourist resources thathighlight the culture and nature that are unique to the region.
Those obligated to pay this tax are travelers that are departing Japan by aircraft or ocean vessel, and as a basic
rule, it will be collected and paid through the special collection method by airline and ocean vessel operators
who operate an international traveler transport service. However, in case the traveler is departing the country ona private jet, the traveler must pay the tax on its own.

Proper and Fair
Taxation and Collection⑵

Remedy for
Taxpayer Rights

In order to ensure accurate understanding of the scheme and procedures of the system by travelers andtravel operators who are obligated to collect the tax, the NTA has uploaded legal interpretation, leafletsand common Q&A examples concerning the International Tourist Tax on its website in addition to efforts in
information and public relations, such as hosting seminars towards business operators in cooperation withrelated ministries, agencies and trade associations.

Preparation of consultation services

LiquorAdministration

Questions from the general public will be addressed through the Phone Consultation Centers, but individual
requests from business operators who are obligated to collect this tax will be collectively addressed throughthe Consumption Tax Division located at the Tokyo and Osaka Regional Tax Bureaus.

Ensuring Proper
Administration of Services
by Certiﬁed Public Tax
Accountants (CPTAs)

Evaluation of
Policies
Statistics

NATIONAL TAX AGENCY REPORT 201932

to Enhance Services for Taxpayers and to Boost
Ⅱ Efforts
Efficiency of Tax Administration
9

Cooperation with private organizations〜 Provide necessary tax information to taxpayers in cooperation with relevant
private organizations 〜
The NTA is implementing public announcement and public relation actively to convey information
on taxes to taxpayers accurately, through various explanatory meetings etc., cooperating with relevant
private organizations.
The NTA is working to strengthen coordination and cooperation between these relevant privateorganizations, for example by promoting measures for the wider use and establishment of e-Tax, bydissemination and publicity work to smoothly establish and implement the Social Security and Tax Number
System ( My Number System ), and by holding various joint events in the Think About Tax week.
These relevant private organizations are playing a large role in achieving a proper self-assessment
system and in spreading knowledge about taxes.

Blue return taxpayersʼ associations
Blue return taxpayers associations are organized for the purpose of contributing to establishing the selfassessment system and promoting small enterprises, mainly by sole proprietors who use the blue return system.
They are formed mainly by sole business proprietors who use the system. There are about 1,800 associations
nationwide, and the total number of members is about 590,000 (as of April 2019). Each blue return taxpayers
association performs a wide range of activities including the guidance on bookkeeping, holding seminars, andencouraging filing of blue returns. For further details, please visit the website of the National General Federationof Blue Return Taxpayers Associations at http://www.zenaoirobr.jp (in Japanese), or contact the nearest blue
return taxpayers association.

Corporations associations
Corporations associations are organized for the purpose of contributing to spreading knowledge oftax, maintaining and developing a proper and fair self-assessment system, as well as achieving smooth tax
administration . There are 481 corporations associations as incorporated associations, and membership stands
at about 770,000 corporations (as of December 2018). Corporations associations organize tax education, taxawareness campaign, seminars on tax and management, etc. With the NTA s support, corporations associations
hold contests for the best picture postcards related to taxes and promote enhancement of corporations tax
compliance . For further details, please visit the website of the National General Federation of Corporations
Associations at http://www.zenkokuhojinkai.or.jp (in Japanese).

Indirect tax associations
Indirect tax associations are organized for the purpose of cooperating in achieving smooth tax administration
through acquiring knowledge about indirect taxes and establishing a voluntary self-assessment system. There
are 516 associations nationwide with about 92,000 members (as of April 2018). Indirect tax associations makesuggestions to the government on ways to enhance the tax system and to improve tax implementation. They
also perform activities to spread knowledge about consumption tax and to prevent tax delinquency. In addition,
they are also coordinating tax slogan (supported by the NTA). For further details, please visit the website of the
National Federation of Indirect Tax Associations at http://www.kanzeikai.jp (in Japanese).

Savings-for-tax associations
Savings-for-tax associations are organized for the purpose of smooth payment of various taxes by means ofsaving funds for tax payment. The associations are established pursuant to the Tax Fund Saving Partnership Act,and there are now about 23,600 associations (as of March 2017). Savings-for-tax associations conduct activities
to promote payment of tax by the due date and coordinating tax essay contests for junior high school students(co-hosted by Savings-for-tax associations and the NTA). For further details, please visit the website of the National
Federation of Savings-for-Tax Associations at http://www.zennoren.jp (in Japanese).

Tax Payment Associations
Tax Payment Associations are organized under the jurisdiction of the Tax Offices of the Osaka Regional Taxation
Bureau, for the purpose of spreading knowledge about taxes, promoting proper filing of returns, uplifting tax
payment morality, and thereby contributing to the development of enterprises and regional societies. There are
83 Tax Payment Associations, and about 140,000 members belong to these associations (as of March 2019). The
associations carry out activities which have large public benefits, such as holding various briefings, conducting
publicity activities, working on tax education, etc. For further details, please visit the website of the Federation ofTax Payment Associations at http://www.nouzeikyokai.or.jp (in Japanese).

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NATIONAL TAX AGENCY REPORT 2019