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.
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 (FY2020)
(Millions of Yen)
|Country / Regions||Names of entities||Primary activities||Revenue||Profit (Loss) before tax||Income tax accrued||Income tax paid||Number of employees|
|Japan||Refer to the table below||5,201,964||845,148||318,417||389,402||43,483|
|Amount on the consolidated financial statements||5,205,537||847,699||318,540||390,726||47,313|
- *Based on the consolidated financial statements for FY2020
- *1Including results for regions other than Japan and consolidation adjustments
Names of entities and primary activities
|Names of entities||Primary activities|
Provide content services such as games and music distribution, advertising, and financial services based on the messenger platform “LINE”