Initiatives for Taxation
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.
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.