Regulation for Enforcement of the Act on Special Provisions concerning Preservation Methods for Books and Documents Related to National Tax Prepared by Means of Computers

Place for tax payment, etc.: means, where a person required to preserve is a taxpayer of national tax relating to books and documents related to national tax (meaning a taxpayer prescribed in Article 2, item (v) (Definitions) of the Act on General Rules for National Taxes (Act No. 66 of 1962); the same applies hereinafter in this item and in Article 5, paragraph (5)(4), item (ii), (e)), the place for tax payment for that national tax, and where the person is not a taxpayer of national tax relating to books and documents related to national tax, the location of the office, place of business, or other equivalent facility at which the corresponding business relating to those books and documents related to national tax (meaning, where the person is required by the provisions of laws concerning national tax to preserve books and documents related to national tax in connection with business, that business) is conducted.

A person required to preserve who intends, pursuant to the provisions of Article 4, paragraph (1) of the Act, to substitute the keeping and preservation of electronic or magnetic records relating to books related to national tax (meaning books related to national tax prescribed in that paragraph; the same applies hereinafter, except in paragraph (6), item (iii)) for the keeping and preservation of those books related to national tax must keep and preserve those electronic or magnetic records in accordance with the following requirements (excluding the requirement set forth in item (iii) where the person required to preserve is, in accordance with the requirement prescribed in Article 5, paragraph (5)(4), item (i), keeping and preserving those electronic or magnetic records).

The provisions of the preceding paragraph apply mutatis mutandis to the preservation of electronic or magnetic records by a person required to preserve who intends to substitute the preservation of electronic or magnetic records relating to documents related to national tax (meaning documents related to national tax prescribed in Article 2, item (ii) of the Act; the same applies hereinafter) for the preservation of those documents related to national tax pursuant to the provisions of Article 4, paragraph (2) of the Act. In this case, the phrase "in accordance with the requirement prescribed in Article 5, paragraph (5)(4), item (i), keeping and" in the preceding paragraph is deemed to be replaced with "ensuring a function enabling a search of the recorded matters of those electronic or magnetic records (limited to a function enabling the transaction date or other date to be set as a search condition and enabling a condition to be set by specifying a range thereof) and".

it is possible to specify an arbitrary period within a taxable period (meaning a taxable period prescribed in Article 2, item (ix) (Definitions) of the Act on General Rules for National Taxes; the same applies in Article 5, paragraph (2)paragraphs (2) and (7)) and to verify in a batch the time stamps attached within that period;

A person required to preserve who intends, pursuant to the provisions of Article 4, paragraph (3) of the Act, to substitute the preservation of electronic or magnetic records relating to documents related to national tax for the preservation of those documents related to national tax may, where the person records in electronic or magnetic records the matters stated in those documents related to national tax that are specified by the Commissioner of the National Tax Agency (hereinafter in this paragraph and paragraph (9), and in Article 5, paragraph (5), item (iii), referred to as "general documents"), notwithstanding the requirements set forth in items (i) and (iii) of the preceding paragraph, preserve the electronic or magnetic records relating to those general documents by keeping, together with the preservation of those electronic or magnetic records, a document clarifying the administrative procedures for the preparation and preservation of those electronic or magnetic records (limited to one for which the person responsible for those administrative matters has been determined). In this case, with regard to the application of the provisions of that paragraph, the phrase "gradations of each of red, green, and blue" in item (ii), (a), (2) of that paragraph is deemed to be replaced with "gradations from white to black", the phrase "promptly after the preparation or receipt of those documents related to national tax," in (b) of that item is deemed to be replaced with "promptly after the preparation or receipt of those documents related to national tax, or when reading those documents related to national tax with a scanner,", the phrase "promptly to attach that" is deemed to be replaced with "promptly, or when reading those documents related to national tax with a scanner, to attach that", the phrase "color display" in item (iv) of that paragraph is deemed to be replaced with "display", and the phrase "color printer" is deemed to be replaced with "printer".

the name or title, address or residence, or location of the head office or principal office, and corporate number (meaning a corporate number prescribed in Article 2, paragraph (16) (Definitions) of the Act on the Use of Numbers to Identify a Specific Individual in Administrative Procedures (Act No. 27 of 2013); the same applies hereinafter in this item and in Article 5, paragraphs (1) through (3)) of the person submitting the notification (for a person who has no corporate number, the name or title and the address or residence, or location of the head office or principal office);

A person required to preserve who intends, pursuant to the provisions of Article 5, paragraph (1) of the Act, to substitute the keeping of electronic or magnetic records relating to books related to national tax and the preservation of those electronic or magnetic records by computer output microfilm for the keeping and preservation of those books related to national tax must keep those electronic or magnetic records and preserve them by computer output microfilm in accordance with the requirements set forth in the items of paragraph (2) of the preceding Article (excluding the requirement set forth in paragraph (2), item (iii) of the preceding Article where the person required to preserve is keeping those electronic or magnetic records and preserving them by computer output microfilm in accordance with the requirement prescribed in Article 5, paragraph (5)(4), item (ii)) and the following requirements.

The provisions of the preceding paragraph apply mutatis mutandis to the preservation by computer output microfilm of electronic or magnetic records by a person required to preserve who intends, pursuant to the provisions of Article 5, paragraph (2) of the Act, to substitute the preservation by computer output microfilm of the electronic or magnetic records relating to documents related to national tax for the preservation of those documents related to national tax. In this case, the phrase "the items of paragraph (2) of the preceding Article" in the preceding paragraph is deemed to be replaced with "items (i) and (iii) of paragraph (2) of the preceding Article", the phrase "keeping those electronic or magnetic records and preserving them by computer output microfilm in accordance with the requirement prescribed in Article 5, paragraph (5)(4), item (ii)" is deemed to be replaced with "preserving those electronic or magnetic records by computer output microfilm in accordance with the requirements set forth in Article 5, paragraph (5)(4), item (ii), (c) through (e)", and the phrase "及び次に" (and the following) is deemed to be replaced with "並びに次に" (and the following, joining larger groups).

A person required to preserve prescribed in Article 7 of the Act must, where the person has engaged in an electronic transaction, take any of the following measures and preserve the electronic or magnetic records relating to the transaction information (meaning the transaction information prescribed in Article 2, item (v) of the Act; the same applies hereinafter in this paragraph and paragraph (3), and in paragraph (5), item (i) of the following Article) of that electronic transaction, at the place where, under the provisions of laws concerning national tax, the document would be required to be preserved if the receipt of that transaction information had been made in writing or if the sending of that transaction information had been made in writing and a copy of it had been prepared, for the period during which that document would be required to be preserved, in accordance with the requirements set forth in Article 2, paragraph (2), item (ii) and paragraph (6), item (v) and, as applied mutatis mutandis in item (vi) of that paragraph, paragraph (2), item (i) of that Article (limited to the part pertaining to (a) of that item) (excluding, where the person required to preserve has made it possible to comply with a request under the provisions of laws concerning national tax to present or submit those electronic or magnetic records (hereinafter in this paragraph referred to as a "request to present or submit electronic or magnetic records"), the requirements set forth in paragraph (6), item (v) of that Article (limited to the part pertaining to (b) and (c)) (in the case where the person required to preserve is a business operator whose sales in the base period relating to its determination period are 50 million yen or less, or in the case where the person has made it possible to comply with a request to present or submit a document, prepared by outputting those electronic or magnetic records under the provisions of laws concerning national tax, that is output in an orderly format and clear state and arranged by transaction date or other date and by business partner, and has made it possible to comply with the request to present or submit electronic or magnetic records, the requirements set forth in that item)).

the name or title, address or residence, or location of the head office or principal office, and corporate number of the person submitting the notification (for a person who has no corporate number, the name or title and the address or residence, or location of the head office or principal office; the same applies hereinafter in this Article);

the name or title, address or residence, or location of the head office or principal office, and corporate number of the person submitting the notification (for a person who has no corporate number, the name or title and the address or residence, or location of the head office or principal office);

the name or title, address or residence, or location of the head office or principal office, and corporate number of the person submitting the notification (for a person who has no corporate number, the name or title and the address or residence, or location of the head office or principal office);

The provisions of Article 2, paragraph (10) apply mutatis mutandis to the submission of the written notifications under the preceding three paragraphs.

The requirements specified by Ministry of Finance Order prescribed in Article 8, paragraph (5) of the Act are that the specified electronic or magnetic records (meaning the specified electronic or magnetic records prescribed in that paragraph; the same applies hereinafter through paragraph (7)) be preserved in accordance with the following requirements.

to use a computer processing system that satisfies any of the following requirements and conforms to the standards specified by the Commissioner of the National Tax Agency (referred to as a "specified computer processing system" in the following item and item (iv)) to exchange the transaction information of electronic transactions (limited to that pertaining to specified electronic or magnetic records; referred to as "specified transaction information" in items (iii) and (iv)) and to preserve those specified electronic or magnetic records:

where a correction or deletion has been made to the recorded matters of that specified electronic or magnetic record, it is possible to confirm those facts and their details;

it is not possible to make a correction or deletion to the recorded matters of that specified electronic or magnetic record;

that the specified computer processing system set forth in the preceding item satisfies any of the following requirements:

it is not possible to record the recorded matters of a specified electronic or magnetic record preserved using that specified computer processing system (limited to those relating to amounts; the same applies in (b)) in electronic or magnetic records relating to books related to national tax or in computer output microfilm after making a correction or deletion;

where the recorded matters of a specified electronic or magnetic record preserved using that specified computer processing system have been recorded in electronic or magnetic records relating to books related to national tax or in computer output microfilm after a correction or deletion has been made, it is possible to confirm those facts and their details;

to make it possible to confirm the mutual relationship between the recorded matters of the electronic or magnetic records relating to specified transaction information (excluding matters ordinarily stated in general documents received or delivered in connection with a transaction) and the recorded matters of the electronic or magnetic records or computer output microfilm relating to books related to national tax that are associated with that specified transaction information;

to make it possible to confirm that the exchange of specified transaction information and the preservation of specified electronic or magnetic records have been carried out using the specified computer processing system set forth in item (i).

The specified electronic or magnetic records in the preceding paragraph are specified electronic or magnetic records pertaining to matters that give rise to a return filed after the due date, etc. (meaning a return filed after the due date, etc. prescribed in Article 8, paragraph (5) of the Act; the same applies hereinafter in this paragraph and the following paragraph) (limited to those specified electronic or magnetic records in the case where the person required to preserve prescribed in paragraph (5) of that Article has submitted in advance to the competent district director with jurisdiction over the place for tax payment, etc. a written notification stating that, where there is a return filed after the due date, etc. with regard to matters recorded in those specified electronic or magnetic records, the provisions of that paragraph will not apply to the person, and stating the following matters).

the name or title, address or residence, or location of the head office or principal office, and corporate number of the person submitting the notification;

other matters for reference.

A person required to preserve prescribed in the preceding paragraph who intends to cease not being subject to the application of the provisions of Article 8, paragraph (5) of the Act in the case where there is a return filed after the due date, etc. with regard to matters recorded in specified electronic or magnetic records must submit in advance to the competent district director with jurisdiction over the place for tax payment, etc. a written notification stating that fact and the following matters. In this case, where that written notification has been submitted, the written notification under the preceding paragraph ceases to be effective for the taxable periods on or after the taxable period that includes the day on which the submission was made.

the name or title, address or residence, or location of the head office or principal office, and corporate number of the person submitting the notification;

the date on which the written notification under the preceding paragraph was submitted;

other matters for reference.

A person required to preserve prescribed in paragraph (6) who intends to change the matters stated in the written notification under that paragraph must submit in advance to the competent district director with jurisdiction over the place for tax payment, etc. a written notification stating that fact and the following matters.

the name or title, address or residence, or location of the head office or principal office, and corporate number of the person submitting the notification;

the date on which the written notification under paragraph (6) was submitted;

the matters to be changed and the details of the change;

other matters for reference.

The provisions of Article 2, paragraph (10) apply mutatis mutandis to the submission of the written notifications under paragraphs (1) through (3) or the preceding three paragraphs.