Tax Strategy
Basic policy
The SoftBank Corp. Group is striving to implement compliance practices in which each individual executive and employee possesses a strong sense of ethics and responsibility at all times. Within tax governance as well, business activities are conducted in a conscientious manner through responsible actions based on accounting regulations and the “SoftBank Code of Conduct.” In addition to ensuring transparency in taxation matters, we aim to contribute to the growth of the economic society in every country and region that we operate in by complying with the tax laws and regulations in all countries of operation and paying taxes in a way which emphasizes fairness as well as by unequivocally adhering to the BEPS Actions and other forms of international tax compliance.
Taxation risks and the governance system
In addition to engaging in impartial and fair transactions domestically and overseas, we fulfill our responsibilities as a taxpayer while reducing taxation risks through appropriate and rational tax planning. In addition, we will build sound relationships with tax authorities, through constructive dialogue make preliminary inquiries as necessary, and strive to resolve any differences of opinion that may arise through constructive dialogue. A Board Director and CFO is responsible for the management and policies of taxation practices. The tax policy is approved by CFO, a board director, and CFO is responsible for the management of taxation practices.In addition, tax issues that arise in each business are reported to the Audit & Supervisory Board as necessary, and the Audit & Supervisory Board confirms the current status by requesting towards the Independent Auditor for the explanations of tax issues as appropriate.
External advisors are also periodically consulted as part of the examination of taxation risks. We actively maintain the following systems regarding transfer pricing regulations and tax havens particularly with respect to overseas-related transactions.
Compliance with transfer pricing regulations
We comply with the laws and regulations of each country in overseas transactions and take the appropriate measures for tax reform according to OECD Transfer Pricing Guidelines and each of the action plans within the BEPS project. To mitigate taxation risks, methods for aggregating information are devised by the addition of the Tax Group in overseas transactions along with verification and documentation that transactions are conducted according to the arm's length principle. In addition, we do not transfer value created to low tax rate countries to avoid taxes. We monitor whether overseas portfolio companies make investments in low tax rate countries, and maintain systems so as to be able to provide the appropriate reporting.
Tax haven compliance
We do not engage in tax planning aimed at tax avoidance such as the use of tax havens through business entities that are not in accordance with business objectives and substance. When investing in countries with lower taxes or when the tax rate is lowered due to legislative amendments in countries or regions where we are developing our businesses, we determine whether tax haven countermeasures are applicable pursuant to the laws and regulations of each country. As a result, we apply tax payment by self-assessment in the event that we are subject to tax haven countermeasures.
Income tax by region (FY2024)
(Millions of Yen)
| Country / Regions | Names of entities | Primary activities | Revenue | Profit before tax | Income tax accrued (excluding tax effect) |
Income tax paid | Number of employees |
|---|---|---|---|---|---|---|---|
| Japan | Refer to the table below | 6,442,288 | 860,234 | 223,289 | 179,086 | 50,650 | |
| Others*1 | 102,061 | 19,823 | 11,918 | 10,041 | 4,420 | ||
| Amount on the consolidated financial statements | 6,544,349 | 880,057 | 235,207 | 189,127 | 55,070 | ||
- [Notes]
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- *1Including results for regions other than Japan and consolidation adjustments.
- *The amounts are the net amount of tax payments and tax refunds.
- *Income taxes paid matches the net amount of “income taxes paid” and “income taxes refunded” in the consolidated statement of cash flows.
- *1
Names of entities and primary activities
| Names of entities | Primary activities |
|---|---|
Japan
etc. |
etc. |
Others
etc. |
etc. |
- [Notes]
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- *1Z Intermediate Holdings Corporation, a subsidiary of the Company, applied for a tender offer undertaken by ValueCommerce Co., Ltd., which aimed to repurchase its own shares through the tender offer. As a result, on May 2, 2024, ValueCommerce Co., Ltd. ceased to be a subsidiary of the Company and newly became its equity method affiliate.
- *2dely inc. was listed on the Tokyo Stock Exchange Growth Market on December 19, 2024.
- *3LINE Pay Taiwan Limited was listed on the Taiwan Stock Exchange on December 5, 2024.
- *1