ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Economy

Japan to let companies store tax documents digitally

TOKYO -- Businesses in Japan will be able to keep digital copies of receipts and contracts for tax purposes as early as next year, eliminating costs for transporting and storing paper documents.

     The government began coordinating with the business community on the matter last month. Companies must now store original paper receipts and contracts for seven years for amounts of 30,000 yen ($261) or more. The proposed changes let businesses keep scanned files instead, regardless of the amount.

     The Keidanren business lobby estimates that Japanese companies spend a combined 300 billion yen or so a year to store such tax-related documents as receipts and contracts. Going paperless is seen offering savings equivalent to a roughly 0.6 percentage point reduction in the effective corporate tax rate.

     Most companies keep originals of documents for less than 30,000 yen because of the hassle of processing them separately from those with larger amounts.

     In response to concerns that digital copies are easier to alter than paper documents, the Ministry of Finance plans to require businesses to introduce internal compliance mechanisms. It will likely obligate companies to scan documents promptly and to record the time and date of scanning. Digital copies will be kept for seven years.

     Japan lags behind such countries as the U.S. and South Korea in going paperless. Large South Korean corporations are said to store one-fifth the amount of documents per employee as their Japanese counterparts.

(Nikkei)

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends June 30th

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media