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.