The yuyo (leniency) measure for electronic transactions has ended; from 2024 (Reiwa 6), the yuyo (grace) measure appliesEven if you are not ready yet, be sure to keep the data
The leniency measure (yuyo sochi) that covered January 2022 (Reiwa 4) to December 2023 (Reiwa 5) was abolished when its deadline arrived. For electronic transactions on or after January 1, 2024 (Reiwa 6), a grace measure (yuyo sochi, using a different term in Japanese) allows storage of electronic data regardless of the retention requirements when the head of the tax office finds there is reasonable cause. No prior application is needed.
- January 1, 2022 (Reiwa 4) to December 31, 2023 (Reiwa 5)Leniency measure (unavoidable circumstances plus presentation of printed output, etc.)
- December 31, 2023 (Reiwa 5)Leniency measure abolished as its deadline arrived
- On or after January 1, 2024 (Reiwa 6)Grace measure (reasonable cause plus presentation of both electronic data and printed output, etc.)
Key points
- The leniency measure covered electronic transactions from January 1, 2022 (Reiwa 4) to December 31, 2023 (Reiwa 5), on condition that there were unavoidable circumstances and the taxpayer could respond to requests to present printed output.
- The grace measure covers electronic transactions on or after January 1, 2024 (Reiwa 6). The conditions are that there is "reasonable cause" and that, at a tax audit or similar, both the electronic data itself and printed output can be presented or submitted.
- "Reasonable cause" includes circumstances in which an environment for storage in line with the requirements is not yet in place, such as systems or in-house workflows not being ready in time. It also covers cases where preparation of a search function is not ready in time.
- No procedure such as a prior application to the tax office is required to use it.
What to do in practice
- First, store the electronic data itself, and make sure the printed output can be presented in an orderly format and in clear condition.
- Set up systems and workflows that meet the storage requirements, and switch to the regular requirements as soon as they are ready.
Documents you receive online should in principle be stored in a set way. But if you are not ready in time, there is a system that makes a special allowance as long as you do not lose the data and can show both the data and a printout when asked.
Points
- If there is a reason you could not get ready in time, special treatment can be allowed.
- But you must not throw away the data itself.
- If the tax office asks, be ready to show both the data and the printout.
What the words mean
- Grace measure
- A special system that lets you wait a while when you cannot follow the rules exactly
- Printed output
- Data printed out on paper or similar
- National Tax Agency (NTA): NTA: Electronic Books Maintenance Act Q&A [electronic transactions] (July 2026 (Reiwa 8)), Q89 to Q93
This article summarizes and explains materials published by government agencies and is not advice on any individual case. Rules can change, so for actual procedures and decisions always check the latest original materials and consult professionals such as tax accountants or labor and social security attorneys. English, Simplified Chinese and Traditional Chinese versions are translations prepared from the Japanese articles for convenience. If anything differs, the Japanese text and the original source take precedence.