The Born Digital Study Group, which includes オービックビジネスコンサルタント (OBC) and 7 other companies, simultaneously published proposals for a new approach to personal income tax filing through digitalisation and a research report on tax digitalisation in the UK.
The proposal focuses on moving Japan's year-end tax adjustment, final tax returns, payroll reports, resident tax, social insurance and benefits away from separate, paper-based processes and redesigning them as an integrated social system built around digital processes. It sets out a policy of combining simplified year-end tax adjustments with real-time payroll reporting, with the aim of implementing a once-only approach.
It proposes establishing a personal income information platform that stores employment income and deduction information in a form that individuals can check themselves, with a view to the possibility of completing a final tax return with one click in the future. It also envisages using the platform for income-based benefits and deductions, provided that a legal basis and transparency are secured.
Simplifying tax filing through platform integration is another focus. The aim is to reduce the filing burden on people with side businesses and sole proprietors by digitising transaction data as close as possible to its source and advancing API integration with accounting and tax-filing software.
The UK's field research report reviews the experience of initiatives such as Real Time Information (RTI) and Making Tax Digital (MTD), noting the importance of balancing major changes to business processes against additional costs when promoting digitalisation. It also refers to the next stages of reform, including digital invoicing.
The proposal recognises that implementation in Japan will require real-time payroll reporting, a personal income information platform and platform integration to be positioned as part of society-wide institutional design.