The current Act stipulates that any person who provides a place of business or arranges/mediates services to the persons who provide services (hereafter referred to as "service provider"), such as chauffeur service, parcel delivery, etc., shall submit the taxation data on the service providers to the head of the tax office having jurisdiction over the location of the place of business, etc.

However, since it is found that 92% of places of business for service providers did not submit taxation data used to determine individual income to such authorities, it is pointed out that the submission cycle of taxation data on service providers be shortened and incentives for fulfilling the obligation to submit taxation data and penalties for non-fulfillment are necessary.

Therefore, this amendment aims to contribute to the identification of the income of service providers and the smooth collection of taxation data by stipulating that the submission cycle of taxation data on service providers shall be shortened from yearly to monthly, the State and local governments are able to provide administrative and financial support to those who faithfully fulfill the obligation to submit taxation data, and an administrative fine shall be imposed and collected on a person who violates the obligation to submit such taxation data (Articles 173 and 177).

Article 173