Compliance
e-Tax Transition in Japan: What Employers and Expats Need to Know Now
Recent reforms require many businesses to submit statutory reports digitally—a change that could affect expats and employers depending on report volume.
By NomadicTax Research Team • 5-8 min read • September 3, 2026
## Overview
Japan is making significant strides in digitizing its tax administration. One key development is expanding the **mandatory submission of legal/tax statistic reports (法定調書, ほうていちょうしょ)** via electronic means (e-Tax or CD/DVD etc.), based on the volume of reports submitted in previous years. ([nta.go.jp](https://www.nta.go.jp/about/organization/tokyo/topics/e-tax/pdf/01/11.pdf?utm_source=openai))
These changes affect employers (給与支払者, “greeting income payers”), especially those who file more than a certain number of forms annually. The threshold for mandatory electronic submission is being lowered, and new methods of submission (e-Tax web-based or using eLTAX) are emphasized. ([nta.go.jp](https://www.nta.go.jp/taxes/tetsuzuki/shinsei/hoteichosho/hoteichosho.htm?utm_source=openai))
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## Key Changes & Implementation
| Change | From | Who’s Affected |
|---|---|---|
| Threshold for electronic submission of statutory reports required (法定調書) lowered from **100** to **30** reports submitted in a baseline prior year | **From filings in** 平成 (Reiwa) 7 or “令和7年中” — for **submissions in January 2028 or later**, i.e. reports submitted in **令和９年１月以後** filings. ([nta.go.jp](https://www.nta.go.jp/about/organization/tokyo/topics/e-tax/pdf/01/11.pdf?utm_source=openai)) | Employers whose number of 法定調書 in a baseline prior year reaches ≥ 30 forms. |
| Methods accepted | e-Tax (WEB), eLTAX, or CD/DVD etc. using defined record formats. ([nta.go.jp](https://www.nta.go.jp/taxes/tetsuzuki/shinsei/hoteichosho/hoteichosho.htm?utm_source=openai)) | Employers, companies, entities issuing source withholding reports, paying agents. |
| Important form examples | 給与所得の源泉徴収票 (salary withholding slip) often part of the reports; other payment or remuneration reports also included. ([nta.go.jp](https://www.nta.go.jp/about/organization/tokyo/topics/e-tax/pdf/01/11.pdf?utm_source=openai)) |
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## Implications for Expats & Global Workers
- If you are working as an employer (or have freelance workers) in Japan, be prepared to use e-Tax or compatible electronic submission systems. Traditional paper filings may no longer be accepted for high-volume issuers.
- Employees should watch for impacts such as digital delivery of source withholding slips (源泉徴収票) through MyNumber-linked portals. Electronic filing can help streamline year-end tax preparation.
- Cross-border individuals should ensure correct reporting, especially if employer is subject to large number of filings, to ensure compliance with Japanese source reporting obligations.
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## Actionable Steps Before Change Comes Into Force
1. **Assess your current reporting volume** – check how many 法定調書 your organization submitted in a baseline prior year (such as 令和7年) to see if the new threshold of 30 applies.
2. **Set up e-Tax / eLTAX access** if not already doing so. Ensure data systems support required formats (CSV/.txt, or record formats specified by NTA).
3. **Update payroll/reporting systems** to generate reports electronically, including required metadata (names, addresses, identifiers).
4. **Communicate with staff and advisors** – ensure that source slip recipients know about changes, especially how they will access digital slips.
5. **Test early** – conduct trial submissions, especially for large batches, to verify that record layouts match requirements and the system is ready.
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## Practical Example
- A mid-sized business issuing 50 salary withholding forms per year previously could submit on paper. Under new rules: since it exceeds 30 in the baseline period, it will need to use e-Tax or CD/DVD methods from January 2028 filings onward.
- A sole proprietor or small office issuing just 20 such forms continues under former rules, but should plan if crossing the threshold.
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## Summary
This digital shift reflects Japan’s push toward tax administrative modernization and efficiency. Employers (including those employing expats) need to prepare systems, staff, and processes now. Expats receiving income should track how source reporting is delivered and keep digital records to ensure smooth compliance.