Tax System Standard Specification [Version 5.0] (Draft)

Overview

This document details the technical specifications and implementation requirements for standardization and commonalization of local government tax administration systems as defined in the Tax System Standard Specification [Version 5.0] (Draft) developed by the Ministry of Internal Affairs and Communications. ## Background and Purpose of Tax System Standardization ### Part of Digital Government Promotion - Promoting standardization and commonalization of core business systems in local governments - Targeting migration of all municipalities to Government Cloud by end of FY2025 - Achieving system operation cost reduction and operational efficiency - Improving resident services and promoting administrative DX ### Position of Standard Specification - Developed based on the "Act on Standardization of Local Government Information Systems" - Unified specifications to be followed by all 1,741 municipalities nationwide - Eliminating vendor lock-in and ensuring competitive environment - Improving data linkage and interoperability ## Major Revisions in Version 5.0 ### Enhancement of Functional Requirements - Addition of new functions corresponding to tax system reforms - Strengthening of My Number linkage functions - Standard implementation of online application and payment functions - Addition of AI-powered business support functions ### Clarification of Non-functional Requirements - Detailed security requirements and zero-trust compliance - Setting numerical targets for availability and performance requirements - Requirement definitions premised on cloud environment operation - Requirements for ensuring business continuity during disasters ## Target Tax Items and Business Scope ### Tax Items Subject to Standardization - Individual residence tax: All processes from assessment to collection - Corporate residence tax: From application reception to assessment and collection management - Fixed property tax and city planning tax: From valuation to assessment and collection - Other taxes such as light vehicle tax and national health insurance tax ### Standardization of Business Processes - Unification of tax document reception and management processes - Standardization of tax calculation logic - Unification of forms layout such as tax payment notices - Standardization of delinquency management and collection workflow ## Data Requirements and Linkage Specifications ### Standardization of Data Models - Common data item definitions for all tax types - Unification of code systems (municipality codes, tax type codes, etc.) - Common master data for resident and corporate information - Standardization of history and version management ### Inter-system Linkage - Real-time linkage with resident registration systems - Data linkage specifications with National Tax Agency and prefectures - Account transfer data linkage with financial institutions - API linkage with My Number Portal ## Migration Plan and Support System ### Phased Migration Approach - Pilot testing and issue identification in leading municipalities - Setting migration schedules by size and region - Provision of data migration tools from existing systems - Setting parallel operation periods and standardizing switching procedures ### Support Measures for Municipalities - Financial support for migration (Digital Infrastructure Reform Support Subsidy) - Individual consultation by technical support teams - Provision of training programs and human resource development - Horizontal deployment of best practices ## Expected Effects and Future Outlook ### Quantitative Effects - Target of 30% reduction in system operation costs - Significant reduction in administrative processing time for tax officials - Shortened system modification periods and cost reduction - Reduction in processing time for residents ### Qualitative Effects - Realization of nationwide unified high-quality tax services - Work style reform and productivity improvement for staff - Advanced policy planning through data utilization - Facilitation of inter-municipal mutual support during disasters The article concludes that tax system standardization is a core initiative of local government DX, requiring steady response from all municipalities as an important measure to simultaneously achieve improvement in resident services and administrative efficiency.