Burden of responding to successive legal and accounting standard revisions

「Meanwhile, customers of our Group have been required to respond operationally to repeated amendments to laws and regulations.」

「Regulatory amendments include the consumption tax invoice system launched in October 2023 and the mandatory electronic storage of electronic transaction data under the revised Electronic Books Preservation Act, for which the grace period ends and compliance becomes necessary in January 2024. Other requirements include the promotion of digital reform by the national and local governments, the standardization and common use of local government information systems, and the introduction of the Government Cloud.」

「Regulatory amendments include the revised Electronic Books Preservation Act, which took effect in January 2022; the group tax consolidation system, which began applying in April 2022; and the invoice system, to be introduced in October 2023. Other requirements include responding to the promotion of digital reform by the national and local governments, the standardization and common use of local government information systems, and the introduction of the Government Cloud.」

「Regulatory amendments include the mandatory electronic filing of tax returns for large corporations introduced in April 2020, the revised Electronic Books Preservation Act taking effect in January 2022, the group tax consolidation regime taking effect in April of the same year, the invoice system to be introduced in October 2023, and electronic invoices. In addition, the promotion of digital reform by the national and local governments and the unified standards for local government public accounting require a response.」

「This is a legal amendment that would eliminate the evidentiary value of accounting books, meaning that the government has authorized the use of accounting software that allows accounting books to be falsified.」

「The factors having a major impact on the products and services provided by our Group are amendments to laws and regulations and the evolution of ICT. Regulatory amendments include the mandatory electronic filing of tax returns for large corporations introduced in April 2020, the accounting standard on revenue recognition to become mandatory in April 2021, the Digital Administrative Procedures Act, and the unified standards for local government public accounting, all of which require a response.」

「In May 2019, the Act Partially Amending Laws Related to the Use of Information and Communications Technology in Administrative Procedures, etc., to Improve Convenience for Relevant Parties and Simplify and Streamline Administrative Operations (the Digital Administrative Procedures Act), which would in principle move administrative procedures online, was enacted.」

「In March 2019, the government approved a bill on digital administrative procedures, which would in principle move administrative procedures online, at a Cabinet meeting and submitted it to the current session of the Diet. If enacted during this session at the earliest, municipalities nationwide would be required to move various application procedures, identity verification, and fee payments online, thereby improving convenience for all users, including government bodies, citizens, and businesses.」

「As a result of this decision, municipalities nationwide will be required to provide administrative services in line with the three principles of digitalization (digital-first, once-only, and connected one-stop) and to improve convenience for all users, including government bodies, citizens, and businesses.」

「In the market for large companies, centered on listed companies, there is a need to respond to successive legal and regulatory changes, including the planned mandatory electronic filing of corporate tax returns; preparations for the draft accounting standard on revenue recognition; consumption tax reforms; the reporting system for multinational enterprise information introduced in connection with transfer pricing documentation requirements, including the mandatory submission of country-by-country reports and master files; and growing demand for the electronic storage of supporting documents following the easing of regulations on the scanning and storage of national tax-related documents.」

「In the market for large companies, centered on listed companies, there is a need to respond to successive legal and regulatory changes, including the phased reduction in the statutory effective corporate tax rate resulting from recent tax reforms; solutions for increasingly complex tax-effect accounting, such as the application guidance on the recoverability of deferred tax assets published by the Accounting Standards Board of Japan; the My Number system and consumption tax reforms; and the reporting system for multinational enterprise information introduced in connection with transfer pricing documentation requirements.」

「In the market for mid-sized and large companies, centered on listed companies, there is a need to respond to successive legal and regulatory changes, including the phased reduction in the statutory effective corporate tax rate resulting from recent tax reforms, solutions for increasingly complex tax-effect accounting, the social security and tax number system, and documentation requirements under the transfer pricing regime.」