Please find this month’s topics below. We hope they will be useful to you.
▼Taxation (Implementation of Tax Audits with Online Tools)
From September 2025, the National Tax Agency (NTA) will begin the phased introduction of online tools (such as email, a web conferencing system, and online storage) for tax audits. The NTA is promoting the adoption of a government-wide working environment known as the Government Solution Service (GSS), and further digitalization of tax audits is expected. Tax audits using online tools (hereinafter referred to as “online tax audits”) will be conducted for both corporations and individuals, and will include corporate tax, consumption tax, income tax (including withholding income tax), inheritance tax, and gift tax among others.
After the introduction of online tax audits, each tax auditor will be provided with a dedicated device. As a result, tax audit communications which were previously conducted mainly by telephone, face-to-face meetings, or postal mails will now be conducted via email, web conference interviews (Teams), and online document exchange. However, prior notification of audits will continue to be given verbally.
The implementation of online tax audits will require the consent of the taxpayer and will be conducted as necessary after completing preliminary procedures such as submitting a consent form and registering an email address.
Online tax audits will first be piloted in the jurisdictions of the Kanazawa and Fukuoka Regional Taxation Bureaus and will be gradually rolled out to other regions by June 2026.
▼Labor Management (Gradual Increase in the Maximum Standard Monthly Remuneration for Employees’ Pension Insurance)
On June 13, 2025, the Act on the Partial Revision of the National Pension Law and Other Related Laws to Strengthen the Functions of the Pension System in Response to Socioeconomic Changes was enacted.
One of the key amendments is the gradual increase in the maximum Standard Monthly Remuneration for Employees’ Pension Insurance. This revision is intended to ensure that individuals earning more than JPY 650,000 per month contribute insurance premiums in line with their actual income. In turn, this will allow them to receive pension benefits that are more proportionate to their earnings during their working years. The measure is also expected to raise the overall benefit levels under the Employees’ Pension Insurance system.
The increase in the maximum Standard Monthly Remuneration will be phased in over three years as follows:
In September 2027, the cap will be raised to JPY 680,000.
In September 2028, it will increase to JPY 710,000.
In September 2029, it will rise to JPY 750,000.
Source: The Ministry of Health, Labour and Welfare website ？ “Gradual Increase in the Maximum Standard Monthly Remuneration for Employees’ Pension Insurance, etc.”