Shulou(Shulou.com)11/24 Report--

CTOnews.com, Nov. 14 (Xinhua)-- Japan is exploring tax reform, considering indirect App consumption tax on IT giants such as Apple and Google, which own App stores, to ensure tax fairness, Sankei reported.

Japanese authorities are said to be considering imposing a consumption tax on App sold by overseas game makers in Japan, not directly from developers or publishers, but indirectly from IT giants such as Google and Apple, which distribute the App.

According to sources, the ruling party tax reform committee will soon start a comprehensive discussion on this, with the aim of incorporating 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 small and do not have offices in Japan, so in many cases the consumption tax is in arrears.

The Japanese government believes that if a large number of overseas App manufacturers fail to pay consumption tax, it may be unfair to Japan's domestic game operators, and the purpose of this new system is for IT giants operating App stores to pay consumption tax for game operators whose sales exceed a certain level, so as 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 in 2022 is about 1.2 trillion yen (CTOnews.com Note: currently about 57.72 billion yuan), which has almost doubled in a decade or so, and there are a large number of overseas game companies in the Japanese market, most of them from Chinese game companies.

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