Sources say Japan is considering imposing game app sales tax on Apple, Google and other manufacturers

According to news from this site on November 14, the Sankei Shimbun reported that Japan is exploring tax reform and considering indirectly imposing an App consumption tax on IT giants such as Apple and Google that own App stores to ensure tax fairness.

It is reported that the Japanese government is considering imposing consumption tax on apps from overseas game manufacturers sold in Japan. These taxes will not be charged directly to developers or publishers, but will be implemented by charging indirect fees to IT giants such as Google and Apple. According to people familiar with the matter, the ruling party’s tax reform committee will soon discuss the matter comprehensively. matters, aiming to incorporate the new system into the 2024 tax reform plan. Japanese media pointed out that these consumption taxes should have been paid by game operators, but many overseas operators are smaller and have not been established in Japan. offices, so in many cases the excise tax payable is in arrears.

According to the Japanese government’s view, if overseas application manufacturers fail to pay consumption tax in large numbers, it may cause unfair competition for domestic game operators in Japan. Therefore, the purpose of this new system is to require technology giants operating app stores to pay consumption tax and to fairly tax game operators whose sales exceed a certain level to ensure tax fairness with local game operators

According to the "Famitsu Game White Paper" released by KADOKAWA in August, Japan's mobile game market size will be approximately 1.2 trillion yen in 2022 (note on this site: currently approximately 57.72 billion yuan), in about 10 years It has almost doubled; and there are currently many overseas game companies in the Japanese market, most of which are from China.

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