Japan, Tech Superpower, Lags at Getting Its Tax System Online

Dec. 7, 2021, 12:00 AM

Japan has a reputation as a high-tech powerhouse, but it has struggled to digitalize its tax system—an area where it falls behind both global peers and Asian neighbors.

Now Tokyo is aiming to catch up. The country’s National Tax Agency recently announced plans to increase use of its E-tax electronic income tax filing system.

Uptake of the system—launched in 2004—has been slow. In the fiscal year that ended in March, the E-tax filing rate was 55.2%—7.7 percentage points higher than the previous year, due to pandemic prevention measures, but still far below the OECD average of over 80%, according to ...

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