12 th XBRL International Conference National Tax Agency JAPAN

1 The national tax electronic declaration/payment system The national tax electronic declaration/payment system National Tax Agency JAPAN 12 th XBRL International Conference

National Tax Agency JAPAN 2 The service of the tax payment infrastructure by IT Download various information and formats from NTA ’ s home page. Download various information and formats from NTA ’ s home page. Create the final return Create the final return The automatic report creating machine by the touch-panel The automatic report creating machine by the touch-panel TAX-Answer … etc. TAX-Answer … etc. 12 th XBRL International Conference and … e-Tax

National Tax Agency JAPAN 3 The process of the e-Tax introduction February, 2004Starts from the Nagoya regional taxation February, 2004Starts from the Nagoya regional taxation bureau jurisdiction *The income tax, the consumption (the individual) declaration declaration March, 2004Available procedures expansion *Declaration, payment, application, reporting March, 2004Available procedures expansion *Declaration, payment, application, reporting for the corporation tax and consumption tax for the corporation tax and consumption tax June, 2004All prefectures are available June, 2004All prefectures are available September, 2004Available procedures expansion September, 2004Available procedures expansion *Almost all procedures are available April, 2005Adds procedures for declaration of the liquor tax and April, 2005Adds procedures for declaration of the liquor tax and the revenue stamp tax the revenue stamp tax 12 th XBRL International Conference

National Tax Agency JAPAN 4 The characteristic of the national tax procedures (= e-Tax ’ s characteristic) The information which concerns the rights and obligations of the taxpayer directly; The information which concerns the rights and obligations of the taxpayer directly; >> The quality and the security are very >> The quality and the security are very important. important. Used for the various procedures by the individuals and the corporations. Used for the various procedures by the individuals and the corporations. A great deal of data at specific period of the year A great deal of data at specific period of the year 12 th XBRL International Conference

5 Tax offices Declaration data transmission Taxpayer Post offices Payment directions Confirmation of payment information Transmission of settled payment information Payment to the Government’s account Bank of Japan ＡＴＭ The multi-payment network Overview of e-Tax 12 th XBRL International Conference Delegation Licensed tax accountant Financial Institutions (BOJ agencies) National Tax Agency JAPAN

6 Available procedures for e-Tax Declaration (Corporation tax, Income tax, Consumption tax, liquor tax, stamp tax) Declaration (Corporation tax, Income tax, Consumption tax, liquor tax, stamp tax) Payment (All tax items) Payment (All tax items) Submission and payment of account for collection of the withholding taxes Submission and payment of account for collection of the withholding taxes Submission of the legal records Submission of the legal records Application/Notification (almost all procedures) Application/Notification (almost all procedures) Request for certificate of electronic tax payment/commission payment Request for certificate of electronic tax payment/commission payment 12 th XBRL International Conference

National Tax Agency JAPAN 7 Available user for e-Tax Taxpayer with obligation Taxpayer with obligation Withholding tax payer with obligation Withholding tax payer with obligation Legal record presenter with obligation Legal record presenter with obligation Licensed tax accountant Licensed tax accountant Manufacturer of alcoholic drinks, liquor stores Manufacturer of alcoholic drinks, liquor stores 12 th XBRL International Conference

National Tax Agency JAPAN 8 Security of e-Tax Protection of Personal Information Protection of Personal Information  on the Network >> SSL * (Encryption) * Secure Socket Layer * Secure Socket Layer  Server, Database >> Firewall, IDS * * Intrusion Detection System * Intrusion Detection System Personal authentication Personal authentication >> login with ID/Password >> login with ID/Password Personal identification, Integrity confirmation Personal identification, Integrity confirmation >> Digital signature, Digital certificate >> Digital signature, Digital certificate 12 th XBRL International Conference

National Tax Agency JAPAN 9 Preparation for e-Tax The Internet environment is available The Internet environment is available >> Contract with the ISP >> Contract with the ISP Using Digital signature (Digital certificate) environment is available Using Digital signature (Digital certificate) environment is available >> Digital certificate, IC card reader, etc … >> Digital certificate, IC card reader, etc … The Internet Banking is available The Internet Banking is available >> Contract with Financial institutions >> Contract with Financial institutions * e-Tax presupposes the system of the authentication infrastructure and the financial institution. 12 th XBRL International Conference

National Tax Agency JAPAN 10 Authentication technologies Digital Certificate for e-Tax Digital Certificate for e-Tax (as of October, 2005) (as of October, 2005)  Digital certificate of commercial registration (Registry office) (Registry office)  Public authentication service (Local government)  Certificate issuance service for licensed tax accountant ( Japan Federation of Certified Public Tax Accountants' Associations) ( Japan Federation of Certified Public Tax Accountants' Associations)  … and 8 private authentication agencies 12 th XBRL International Conference

National Tax Agency JAPAN 11 System of Financial institutions The internet banking service of financial institutions for the Multi-Payment Network (MPN) The internet banking service of financial institutions for the Multi-Payment Network (MPN) - for individuals - for individuals - for corporations - for corporations … and ATM for the “ Pay-easy ” service “ Pay-easy ” service for MPN 12 th XBRL International Conference

National Tax Agency JAPAN 12 Procedures of use for e-Tax 12 th XBRL International Conference

National Tax Agency JAPAN 13 Procedure for beginning e-Tax Submission of start-to-use notification (Mail available) Submission of start-to-use notification (Mail available) >> Attach the confirmation papers just as >> Attach the confirmation papers just as transcript of register transcript of register Acquisition of user ID number Acquisition of user ID number >> ID, Password >> ID, Password Sending the e-Tax software from the Tax office Sending the e-Tax software from the Tax office Installation software, Registration for digital certificate, Change the password, Registration for the number of tax payment confirmation Installation software, Registration for digital certificate, Change the password, Registration for the number of tax payment confirmation 12 th XBRL International Conference

National Tax Agency JAPAN 14 Procedures of use for e-Tax (Declaration)  Make the declaration data (through e-Tax software or other software)  Digital signature  Login to e-Tax system  Send the declaration data  Confirm the notification of receiving in message box  (>> tax payment) 12 th XBRL International Conference

National Tax Agency JAPAN 15 Make the declaration data （ through e- Tax software) Make the declaration data （ through e- Tax software) Financial disclosure (XBRL format) for declaration of corporate tax through the accounting software Internalize available 12 th XBRL International Conference Procedures of use for e-Tax (Declaration)

National Tax Agency JAPAN 16 Procedures of use for e-Tax (Tax payment) Registration method (all tax items) Registration method (all tax items)  Registration of the tax items, taxation term, tax amount, … etc.  Login to the Internet  Orders for payment  Confirmation for Result of payment Input method (corporate tax, income tax, consumption tax) Input method (corporate tax, income tax, consumption tax) ○ Available for use the Internet-banking, ATM … without registration of payment information 12 th XBRL International Conference

National Tax Agency JAPAN 17 Usage of e-Tax （ ～ ） The number of start-to-use notification : 100,901 The number of start-to-use notification : 100,901 The number of use: 143,412 The number of use: 143,412 Declaration: 89,704 Declaration: 89,704 Withholding: 11,155 Withholding: 11,155 Legal record: 21,914 Legal record: 21,914 Application: 4,345 Application: 4,345 Tax payment: 16,294 Tax payment: 16, th XBRL International Conference

National Tax Agency JAPAN 18 Help-desk for users e-Tax Homepage e-Tax Homepage >> Serving information for using e-Tax （ ） >> Serving information for using e-Tax （ ） Help desk Help desk >> Answering any questions for procedures to use, handling software, … >> Answering any questions for procedures to use, handling software, … Tel : :00a.m. ~ 5:00p.m. Tel : :00a.m. ~ 5:00p.m. weekdays only weekdays only 12 th XBRL International Conference

National Tax Agency JAPAN 19 Original-character : Mr. E-TA Simple and familiar character Simple and familiar character Character name Character name >> named after e-Tax >> named after e-Tax Design Design >> e + Shape of PC monitor >> e + Shape of PC monitor 12 th XBRL International Conference

National Tax Agency JAPAN 20 Please use e-Tax !! You can do any procedures for declaration and tax payment from your home, office, some other places !! You can do any procedures for declaration and tax payment from your home, office, some other places !! It is very convenient for repeat procedures, such as every month payment of withholding tax, midterm declaration of consumption tax !! It is very convenient for repeat procedures, such as every month payment of withholding tax, midterm declaration of consumption tax !! You can receive the format of start-to-use e-TAX from the tax offices or NTA ’ s homepage !! You can receive the format of start-to-use e-TAX from the tax offices or NTA ’ s homepage !! >> >> 12 th XBRL International Conference

National Tax Agency JAPAN Thank you