Year-End Adjustment 2025 (No.3)

The Digital Shift: Japan’s Move to Electronic Year-End Tax Adjustment

The National Tax Agency (NTA) has started promoting the digitalization of year-end tax adjustment procedures.　Traditionally, companies in Japan collect several paper forms from employees every December — such as the Dependent Deduction Form and Insurance Premium Declaration.　Now, the NTA aims to move these processes online, reducing manual paperwork for both employers and employees.

How it works:

• Employees fill out their year-end adjustment forms online using a secure portal or company system.

• Employers can import this data directly into their payroll software.

• Submission to tax offices and storage of documents can also be done electronically.

The system is designed to be compatible with “My Number” (national ID) and e-Tax, ensuring data accuracy and security.

💡 Simple summary:　Paper forms → Digital entry　Manual collection → Automated upload　Complicated records → One-stop online process

While still optional for many small companies, this moves signals a major change in Japan’s tax administration — making it easier to manage compliance in the digital era.