The My Number system, officially known as the Social Security and Tax Number System, was introduced in Japan in 2016. It assigns a unique identification number, called the “My Number,” to every resident of Japan, including both Japanese citizens and foreign residents. This guide provides an overview of the My Number tax system in Japan and how it impacts taxpayers.
Understanding the Corporate Number in Japan
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- Guide to Japanese My Number Tax
- Objectives of the Japanese My Number system
- My Number Application process – how to get one?
- When would I use my number in Japan?
- What are my obligations as an employer?
- What are the pros and cons of having a My Number Card?
- Frequently Asked Questions
- Japanese My Number Terms and Glossary
- Summary
Guide to Japanese My Number Tax
The My Number (マイナンバー)system, officially known as the Social Security and Tax Number System, was introduced in Japan in 2016. It assigns a unique identification number, called the “My Number,” to every resident of Japan, including both Japanese citizens and foreign residents. This guide provides an overview of the My Number tax system in Japan and how it impacts taxpayers.
What is the My Number?
The My Number is a 12-digit identification number assigned to individuals for tax and social security purposes. It is used to streamline administrative procedures, enhance tax compliance, and ensure the efficient delivery of public services in Japan.
Obtaining a My Number
Every resident of Japan is assigned a My Number by their local municipal office. Foreign residents who are registered in the Basic Resident Register are also eligible for a My Number. It is important to notify the municipal office of any changes to personal information, such as name or address, to ensure accurate record-keeping.
Use of My Number for Tax Purposes
The My Number is used for various tax-related matters in Japan. It is required when filing tax returns, making tax payments, and conducting other tax-related transactions. The My Number is also used by employers to report employee income and by financial institutions to report certain financial transactions.
My Number Card
Individuals receive a My Number Card, which contains their My Number and other personal information. The card serves as an official identification document and can be used for various administrative procedures, including tax-related matters. It is important to keep the My Number Card secure and notify the authorities in case of loss or theft.
Filing Tax Returns
When filing tax returns in Japan, individuals are required to provide their My Number. The My Number is used to verify the taxpayer’s identity and link the tax return to their personal records. Failing to provide the My Number or providing incorrect information may result in penalties or delays in processing the tax return.
My Number and Privacy
The Japanese government has implemented strict privacy protections for the My Number system. Personal information obtained through the My Number system is securely managed and used only for authorized purposes, such as tax administration and social security services. Unauthorized disclosure or misuse of My Number information is subject to legal penalties.
My Number and Taxpayer Services
The My Number system has facilitated the development of online taxpayer services in Japan. Taxpayers can access their tax information, file tax returns, and make tax payments electronically through the e-Tax system. This online platform offers convenience, efficiency, and helps streamline tax administration processes.
Compliance and Reporting
Taxpayers are responsible for ensuring the accurate reporting of their income and fulfilling their tax obligations in Japan. It is important to keep accurate records of income, deductions, and other relevant tax information. In case of any changes in personal circumstances or tax-related matters, it is advisable to consult with tax professionals or refer to official tax authorities for guidance.
Staying Informed
Tax laws and regulations in Japan can change over time. It is important to stay informed about any updates or revisions to tax laws, deductions, credits, and reporting requirements. Taxpayers can consult tax professionals, refer to official tax authorities, or access reliable sources of information to stay up-to-date with the latest developments.
Objectives of the Japanese My Number system
The objectives of the Japanese My Number system, also known as the Social Security and Tax Number System, can be best summarized as follows:
1. Efficient Administration: One of the key objectives of the My Number system is to facilitate efficient administration of social security, tax, and other public services. By assigning a unique identification number to each resident, the government aims to streamline administrative processes, reduce duplication of efforts, and improve the accuracy and efficiency of data management.
2. Enhanced Tax Compliance: The My Number system plays a crucial role in enhancing tax compliance in Japan. It allows the government to accurately link taxpayers’ personal information, income data, and tax records. This helps in preventing tax evasion, ensuring fairness in tax assessments, and promoting transparency in the tax system.
3. Improved Public Service Delivery: The My Number system enables efficient delivery of public services by integrating personal information across various government agencies. It facilitates the sharing of relevant data between different institutions, such as tax authorities, social security agencies, and local municipalities. This integration helps in providing targeted and personalized services to residents.
4. Strengthened Social Security Systems: The My Number system aims to strengthen social security systems by improving the administration of benefits and welfare programs. It enables better coordination and management of social security information, ensuring that individuals receive the appropriate benefits and services they are entitled to.
5. Protection of Personal Information: While promoting efficient administration, the My Number system also emphasizes the protection of personal information. Stringent privacy measures are in place to safeguard the confidentiality and security of individuals’ data. The system ensures that personal information obtained through the My Number is used only for authorized purposes and is subject to legal penalties if misused or disclosed without proper authorization.
6. Facilitation of Online Services: The My Number system has paved the way for the development of online taxpayer services in Japan. It enables individuals to access their tax information, file tax returns, and make tax payments electronically through platforms like the e-Tax system. This digital transformation enhances convenience, accessibility, and efficiency in tax administration.
By achieving these objectives, the Japanese government aims to create a more efficient, fair, and transparent system that benefits both residents and the administration of social security and tax services.
My Number Application process – how to get one?
The application process for obtaining a My Number in Japan involves the following steps:
1. Notification: As a resident of Japan, you will receive a notification from your local municipal office indicating the time frame for the My Number application process. The notification will provide instructions on how to proceed.
As a new resident in Japan, you will receive a notification by mail after registering at the local municipal office. The notification letter cannot be used as proof of your My Number. To prove your My Number, you will need a Certificate of Residence with My Number.
Above is an sample image of the Notification Letter you will receive. On the top of the letter you can see your My Number (個人番号）, Your Name （氏名）, Date of Birth（生年月日）. By using the QR code on the letter, you can apply for your My Number Card online (via a smartphone or a tablet).
2. Visit the Municipal Office: Within the designated time frame, visit your local municipal office with the required documents. These documents typically include your resident card, passport, or other identification documents to verify your identity and residency status.
3. Application Form: Fill out the application form provided by the municipal office. The form will require personal information such as your name, address, date of birth, and other relevant details.
4. Submit Required Documents: Along with the application form, submit the necessary documents as instructed by the municipal office. This may include identification documents, proof of residency, and other supporting paperwork.
5. My Number Card Issuance: After submitting the application and required documents, you will receive a notice indicating the date when you can collect your My Number Card. This card will have your unique 12-digit My Number and personal details.
6. Collecting the My Number Card: On the designated date, visit the municipal office to collect your My Number Card. You may need to bring identification documents for verification purposes. Once you receive the card, ensure its safekeeping as it serves as an official identification document.
It’s important to note that the application process may vary slightly depending on the specific procedures implemented by your local municipal office. It’s advisable to check the instructions provided in the notification you receive and contact the municipal office directly for any additional guidance or clarification.
Remember to comply with all requirements and deadlines set by the municipal office to ensure a smooth application process and timely issuance of your My Number Card.
The Japanese government has a cute website in English detailing the steps required to obtain a card. See more here on “how to obtain a card“
When would I use my number in Japan?
In Japan, the My Number system is used in various situations and by different entities for identification, administrative, and record-keeping purposes. Here are some common instances where My Number is used:
1. Taxation: The My Number is primarily utilized for tax-related matters. Individuals use their My Number when filing tax returns, making tax payments, and accessing online tax services. It helps in accurately linking personal information, income data, and tax records for efficient tax administration and compliance.
2. Social Security: The My Number system is instrumental in the administration of social security benefits and welfare programs. It allows for the efficient management of data related to pensions, health insurance, employment insurance, and other social security schemes.
3. Employment: Employers in Japan are required to collect and use employees’ My Number for various employment-related purposes. This includes reporting employee income, making social insurance contributions, and providing accurate information for payroll and taxation.
4. Public Services: Government agencies and local municipalities may use My Number to provide public services effectively. It allows for the streamlined administration of services such as public welfare, education, healthcare, and disaster relief.
5. Financial Institutions: In some cases, financial institutions may request your My Number when opening bank accounts or engaging in financial transactions. This helps in complying with anti-money laundering regulations and verifying the identity of individuals.
6. Health Services: My Number can be used in the healthcare sector for efficient record-keeping and billing processes. It aids in linking medical records, insurance information, and identification of individuals for accurate healthcare service delivery.
7. Official Identification: The My Number Card serves as an official identification document in Japan. It can be used to prove identity in various situations, such as when applying for government services, renting an apartment, or accessing certain facilities.
It’s important to note that the use of My Number is regulated by Japanese law, and strict measures are in place to protect the privacy and security of personal information associated with the My Number system. The government ensures that the use of My Number is limited to authorized purposes and that appropriate safeguards are in place to prevent misuse or unauthorized access.
What are my obligations as an employer?
As an employer in Japan, you have a responsibility to register your staff for My Number. The My Number system requires employers to collect and manage the My Number information of their employees for tax and social security purposes. Here are the key steps to register your staff for My Number:
1. Collection of My Number: When hiring new employees, you should request their My Number information, which consists of their unique 12-digit identification number. This information is typically provided on their residence card or other identification documents.
2. Employee Notification: Once you have collected the My Number information from your employees, you need to notify the employees that you will be using their My Number for tax and social security purposes. This notification should include details of how their My Number will be used and any relevant privacy policies.
3. Record-Keeping: It is important to maintain accurate records of your employees’ My Number information, along with their other employment details. This includes storing the information securely and ensuring it is protected from unauthorized access.
4. Social Insurance Reporting: As an employer, you are required to report your employees’ My Number to the social insurance agency, along with their other employment information. This helps in linking their social insurance records with their My Number.
5. Tax Reporting: When filing tax returns on behalf of your employees, you will need to include their My Number information. This ensures accurate identification and proper tax assessment for each employee.
6. Employee Privacy and Security: It is crucial to handle your employees’ My Number information with care and comply with the relevant privacy and data protection regulations. Take appropriate measures to protect the confidentiality and security of the My Number information to prevent any unauthorized access or misuse.
When hiring foreigners in Japan, employers have specific obligations regarding the My Number system. Here are the key obligations to keep in mind:
1. Verification of Residence Status: It is important to verify the residence status of foreign employees to ensure they are legally allowed to work in Japan. This includes confirming their visa status, duration of stay, and any applicable work restrictions.
2. Tax Reporting and Withholding: When filing tax returns for foreign employees, their My Number should be included in the tax reporting. Additionally, you must correctly calculate and withhold income tax and social security contributions from their wages, based on their tax residency status and applicable tax treaties.
3. Compliance with Immigration Laws: In addition to My Number obligations, employers must comply with immigration laws and regulations when hiring foreign workers. This includes verifying and documenting their immigration status, reporting changes in employment status, and adhering to any work permit requirements.
It’s important to consult with the appropriate government agencies or seek professional advice to ensure compliance with all legal requirements and procedures related to My Number registration for your staff.
Information on the Japanese corporate identification information can be found here.
What are the pros and cons of having a My Number Card?
Having a My Number Card in Japan has its advantages and disadvantages. Let’s explore the pros and cons:
Pros:
1. Simplified Identification: The My Number Card serves as a unified form of identification for various administrative procedures, such as opening bank accounts, registering for government services, or conducting financial transactions. It streamlines identification processes and reduces the need for carrying multiple identification documents.
2. Efficient Tax and Social Security Systems: The My Number system facilitates the administration of tax and social security programs by linking an individual’s income and social security information. It enables accurate tax assessments, efficient processing of benefits and pensions, and helps prevent fraudulent activities.
3. Convenient Government Services: With the My Number Card, individuals can access various online government services more conveniently. It allows for electronic filing of tax returns, applying for social security benefits, and accessing personal records or information securely.
4. Speeding Up Administrative Procedures: The My Number Card expedites administrative procedures by providing quick verification of identity and personal information. It can help reduce paperwork, shorten processing times, and enhance overall administrative efficiency.
Cons:
1. Privacy and Security Concerns: The My Number system collects and stores a significant amount of personal information, raising concerns about privacy and potential misuse of data. There are concerns about data breaches, unauthorized access, or potential abuse of personal information.
2. Identity Theft Risk: If a My Number Card is lost or stolen, there is a risk of identity theft. Unauthorized individuals could potentially use the card for fraudulent activities, financial transactions, or accessing sensitive personal information.
3. Limited Usage Abroad: The My Number Card is primarily designed for use within Japan and may have limited relevance or acceptance outside the country. It may not serve as a valid form of identification or be recognized by foreign organizations or institutions.
4. Initial Registration and Maintenance: Obtaining a My Number Card requires initial registration and updating of personal information. This process may involve administrative procedures, document submissions, and potential visits to government offices. Additionally, keeping personal information updated and accurate requires ongoing effort and compliance with reporting requirements.
It’s important to note that the pros and cons of having a My Number Card may vary based on individual perspectives and concerns. It is advisable to stay informed about the system’s developments, exercise caution in protecting personal information, and be aware of privacy rights and regulations associated with the use of My Number Card.
My Number / Japan tax number FAQ
Frequently Asked Questions (FAQ) about Japan’s My Number System
Q: What is the My Number system?
A: The My Number system, officially known as the Social Security and Tax Number System, is a unique identification system introduced in Japan. It assigns a 12-digit identification number, called the My Number, to every resident, including Japanese citizens and foreign residents.
Q: What is the purpose of the My Number system?
A: The My Number system aims to streamline administrative procedures, enhance tax compliance, and ensure efficient delivery of public services in Japan. It enables the government to accurately identify individuals and link their personal information for tax and social security purposes.
Q: How do I obtain a My Number?
A: Every resident of Japan is assigned a My Number by their local municipal office. Foreign residents who are registered in the Basic Resident Register are also eligible for a My Number. The My Number Card, containing the unique identification number, is issued to individuals.
Q: When is the My Number required?
A: The My Number is required for various tax-related matters in Japan. It is used when filing tax returns, making tax payments, and conducting other tax-related transactions. Employers also use the My Number to report employee income, and financial institutions use it to report certain financial transactions.
Q: How is the My Number used in tax filing?
A: When filing tax returns, individuals are required to provide their My Number. It is used to verify the taxpayer’s identity and link the tax return to their personal records. Failure to provide the My Number or providing incorrect information may result in penalties or delays in processing the tax return.
Q: Is my personal information secure under the My Number system?
A: Yes, the Japanese government has implemented strict privacy protections for the My Number system. Personal information obtained through the system is securely managed and used only for authorized purposes, such as tax administration and social security services. Unauthorized disclosure or misuse of My Number information is subject to legal penalties.
Q: Can I use the My Number Card as an identification document?
A: Yes, the My Number Card serves as an official identification document in Japan. It contains the My Number and other personal information and can be used for various administrative procedures, including tax-related matters.
Q: Can I access my tax information online through the My Number system?
A: Yes, the My Number system has facilitated the development of online taxpayer services in Japan. Through the e-Tax system, taxpayers can access their tax information, file tax returns, and make tax payments electronically. This online platform offers convenience, efficiency, and helps streamline tax administration processes.
Q: What are my responsibilities as a taxpayer under the My Number system?
A: As a taxpayer, you are responsible for accurately reporting your income and fulfilling your tax obligations in Japan. It is important to keep accurate records of income, deductions, and other relevant tax information. Staying informed about changes in tax laws, deductions, and reporting requirements is also important to ensure compliance.
Q: Where can I find more information about the My Number system?
A: For more detailed and up-to-date information regarding the My Number system and its implications on tax-related matters, it is advisable to consult with tax professionals or refer to official tax authorities in Japan. They can provide specific guidance tailored to your circumstances. The Japanese government has a great dedicated English site with many more Frequently asked questions about the “My Number card”
Q: What if I lose “My Number Card”?
A: If you have lost your My Number card in Japan, it is important to take immediate action to protect your personal information and to replace the card. Here are the steps you should follow:
Report the Loss: Notify the local city office or ward office where you are registered of the loss of your My Number card. You can do this in person or by phone – 0120-0178-27. Provide them with details about the loss, such as when and where it occurred.
Identity Verification: To apply for a replacement card, you will need to verify your identity. Visit the local city office or ward office in person and provide them with the necessary identification documents, such as your passport, residence card, or driver’s license. This is to ensure that the replacement card is issued to the correct individual.
Application for Replacement: Fill out the required application form for a replacement My Number card. You may need to provide information such as your name, address, date of birth, and My Number (if known). The application form is usually available at the city office or ward office, or you may be able to download it from their website.
Payment of Fee: There is usually a fee associated with replacing a lost My Number card. The amount may vary depending on the municipality. Pay the required fee at the designated counter or payment location. Keep the receipt as proof of payment.
Wait for Processing: Once you have submitted the application and paid the fee, the city office or ward office will process your request. The processing time may vary, but you will generally receive a new My Number card within a few weeks.
Update Relevant Parties: After receiving your replacement card, update any organizations or institutions where you had previously provided your My Number card information. This includes employers, financial institutions, government agencies, and other relevant entities.
Q: Can I change “My Number” Card?
A: It is generally not possible to change your My Number (personal identification number). The My Number is a unique identifier that is assigned to individuals by the government and remains the same throughout your lifetime.
Q: How long does it take to receive a “My Number” Card?
A: Generally, about 2-3 weeks.
Q: What if I don’t have a My Number Card?
A: While not having a My Number Card may present certain challenges, it’s important to note that alternative methods of identification or verification can be used in some cases. For example, you may be able to provide alternative forms of identification, such as a residence card or passport, to complete certain administrative procedures.
Please note that this FAQ provides general information about Japan’s My Number system and should not be considered as professional tax advice.
Japanese My Number Terms and Glossary
| English | Romaji | Kanji/Katakana |
|---|---|---|
| My Number | Mainanbā | マイナンバー |
| My Number Card | Mainanbā kādo | マイナンバーカード |
| Individual Number Card | Kojin bangō kādo | 個人番号カード |
| Individual Number Notice | Kojin bangō tsūchi-sho | 個人番号通知書 |
Summary of Japan’s My Number System
The My Number system, also known as the Social Security and Tax Number System, is a unique identification system introduced in Japan in 2016. It assigns a 12-digit identification number, called the My Number, to every resident of Japan, including Japanese citizens and foreign residents.
The primary purpose of the My Number system is to streamline administrative procedures, enhance tax compliance, and ensure efficient delivery of public services in Japan. It enables the government to accurately identify individuals and link their personal information for tax and social security purposes.
To obtain a My Number, residents must register with their local municipal office. Foreign residents who are registered in the Basic Resident Register are also eligible for a My Number. Each individual is issued a My Number Card, which contains their unique identification number and other personal details. The My Number Card serves as an official identification document and can be used for various administrative procedures.
In the context of taxation, the My Number plays a crucial role. Taxpayers are required to provide their My Number when filing tax returns, making tax payments, and engaging in other tax-related transactions. It helps verify the taxpayer’s identity and links their tax information to their personal records.
The My Number system has facilitated the development of online taxpayer services in Japan. Through the e-Tax system, taxpayers can access their tax information, file tax returns, and make tax payments electronically. This online platform offers convenience, efficiency, and helps streamline tax administration processes.
Privacy and security are major considerations in the implementation of the My Number system. The Japanese government has implemented strict safeguards to protect personal information obtained through the system. Personal data is securely managed and used only for authorized purposes, such as tax administration and social security services.
It is essential for taxpayers to comply with their tax obligations and accurately report their income. Keeping accurate records of income, deductions, and other relevant tax information is crucial. Staying informed about changes in tax laws, deductions, and reporting requirements is also important to ensure compliance.
While this summary provides an overview of Japan’s My Number system, it is advisable to consult with tax professionals or refer to official tax authorities for detailed and up-to-date information regarding the specific implications of the My Number on tax-related matters in Japan.
Remember, this guide provides a general overview of the My Number tax system in Japan and should not be considered as professional tax advice. For specific guidance regarding your tax obligations, it is recommended to consult with tax professionals or refer to official tax authorities in Japan.