Company Info

Initiatives for Taxation

Tax Policy

The SoftBank Group’s Tax Policy sets out the principles concerning taxation affairs to be observed by SoftBank Group Corp. and its subsidiaries when conducting business activities. The policy was decided by a resolution of SoftBank Group Corp.'s Board of Directors. It states the Group's system for the execution of operations and risk management related to taxation affairs, compliance with all relevant tax-related laws and ordinances when conducting business activities, endeavor to ensure appropriate payment of taxes and optimization of tax costs, and establishing favorable relationships with tax authorities. The SoftBank Group will conduct its business activities in accordance with the laws and ordinances of each country and fulfill its tax obligations appropriately, thereby contributing to the economic and social development of the countries in which we operate.

Tax Policy（163KB／2 pages）

Characteristics of SoftBank Group’s Taxation

Income on the consolidated statement of profit or loss is not directly connected to SBG’s stand-alone tax payment amount.

The consolidated statement of profit or loss of SoftBank Group Corp. (“SBG”) presents the operating results for SBG and its subsidiaries as a group, while the stand-alone statement of profit or loss presents SBG’s operating results as a stand-alone company. Moreover, the income on SBG’s stand-alone statement of profit or loss is only the income for accounting purposes, which differs from the income used as the basis for calculating income taxes (taxable income). SBG has not introduced the Consolidated Tax Return Filing System (Japanese Group Relief System).

The majority of SBG’s stand-alone operating revenue is dividends received from affiliates, a significant portion of which is non-taxable.

As a pure holding company, the majority of SBG’s stand-alone operating revenue is dividends received from its subsidiaries and associates. These subsidiaries and associates pay income taxes on their respective income and then pay dividends from the remaining income. Therefore, a substantial portion of the dividends received falls outside the scope of taxation for SBG. On the other hand, one-time gains from the sale of shares held by SBG are taxable.

Illustration for Calculation of SBG’s Stand-alone Income before Income Tax and Income Taxes
This figure illustrates the calculation of SBG’s stand-alone income before income tax in corporate accounting, as well as the calculation of its taxable income and income taxes. Stand-alone income before income tax is calculated by subtracting expenses and losses from operating revenue. Taxable income and income taxes, on the other hand, are calculated by making necessary tax adjustments to the income before income tax, as recorded in corporate accounting, in accordance with corporate tax law. These adjustments include specific additions and subtractions to arrive at the final taxable income. Income taxes are then calculated by applying the applicable tax rate to this taxable income. A substantial portion of SBG’s operating revenue comes from dividends received from subsidiaries and associates, with additional contributions from gains on the sale of shares. To avoid double taxation, a significant portion of dividends received from subsidiaries and associates is deducted from taxable income as tax adjustments. Additionally, loss carryforwards, if any, can be used to partially reduce taxable income.
This figure illustrates the calculation of SBG’s stand-alone income before income tax in corporate accounting, as well as the calculation of its taxable income and income taxes. Stand-alone income before income tax is calculated by subtracting expenses and losses from operating revenue. Taxable income and income taxes, on the other hand, are calculated by making necessary tax adjustments to the income before income tax, as recorded in corporate accounting, in accordance with corporate tax law. These adjustments include specific additions and subtractions to arrive at the final taxable income. Income taxes are then calculated by applying the applicable tax rate to this taxable income. A substantial portion of SBG’s operating revenue comes from dividends received from subsidiaries and associates, with additional contributions from gains on the sale of shares. To avoid double taxation, a significant portion of dividends received from subsidiaries and associates is deducted from taxable income as tax adjustments. Additionally, loss carryforwards, if any, can be used to partially reduce taxable income.

Taxes related to SoftBank Vision Funds investment business are compliant with the tax systems of the relevant jurisdictions, including Japan.

Income Taxes Paid on a Consolidated Basis

Income Taxes Paid on a Consolidated Basis