Transition from the Consolidated Taxation System to the Group Tax Sharing System

「The company and certain domestic consolidated subsidiaries apply the group tax sharing system and, in accordance with the Practical Solution on the Accounting and Disclosure under the Group Tax Sharing System (ASBJ Practical Solution No. 42, 12 August 2021), account for and disclose corporate income taxes and local corporate taxes, as well as the related tax-effect accounting.」

「The company and certain domestic consolidated subsidiaries apply the group tax sharing system and, in accordance with the Practical Solution on the Accounting and Disclosure under the Group Tax Sharing System (ASBJ Practical Solution No. 42, 12 August 2021), account for and disclose corporate income taxes and local corporate taxes, as well as the related tax-effect accounting.」

「The company and certain domestic consolidated subsidiaries have transitioned from the consolidated taxation system to the group tax sharing system from the beginning of the first-quarter consolidated accounting period. Accordingly, the accounting treatment and disclosures for corporate income taxes, local corporate taxes and tax-effect accounting are in accordance with the Practical Solution on the Accounting and Disclosure under the Group Tax Sharing System (ASBJ Practical Solution No. 42, 12 August 2021, hereinafter, “Practical Solution No. 42”).」

「The company and certain domestic consolidated subsidiaries have transitioned from the consolidated taxation system to the group tax sharing system from the beginning of the current first-quarter consolidated accounting period. Accordingly, the accounting treatment and disclosures for corporate income taxes, local corporate taxes and tax-effect accounting are in accordance with the Practical Solution on the Accounting and Disclosure under the Group Tax Sharing System (ASBJ Practical Solution No. 42, 12 August 2021, hereinafter, “Practical Solution No. 42”).」

「With respect to the transition by the company and certain domestic consolidated subsidiaries to the group aggregation system established under the Act Partially Amending the Income Tax Act and Other Laws (Act No. 8 of 2020), and items for which the standalone taxation system was revised in connection with that transition, we have applied the treatment in Paragraph 3 of the Practical Response Report on the Application of Tax Effect Accounting for the Transition from the Consolidated Taxation System to the Group Aggregation System (Practical Response Report No. 39, dated 31 March 2020). Accordingly, Paragraph 44 of the Implementation Guidance on Tax Effect Accounting has not been applied, and deferred tax assets and liabilities are measured based on the provisions of the tax laws before amendment.」

「With respect to the transition by the company and certain domestic consolidated subsidiaries to the group aggregation system established under the Act Partially Amending the Income Tax Act and Other Laws (Act No. 8 of 2020), and items for which the standalone taxation system was revised in connection with that transition, we have applied the treatment in Paragraph 3 of the Practical Response Report on the Application of Tax Effect Accounting for the Transition from the Consolidated Taxation System to the Group Aggregation System (Practical Response Report No. 39, dated 31 March 2020). Accordingly, Paragraph 44 of the Implementation Guidance on Tax Effect Accounting has not been applied, and deferred tax assets and liabilities are measured based on the provisions of the tax laws before amendment.」

「With respect to the transition by the company and certain domestic consolidated subsidiaries to the group aggregation system established under the Act Partially Amending the Income Tax Act and Other Laws (Act No. 8 of 2020), and items for which the standalone taxation system was revised in connection with that transition, we have applied the treatment in Paragraph 3 of the Practical Response Report on the Application of Tax Effect Accounting for the Transition from the Consolidated Taxation System to the Group Aggregation System (Practical Response Report No. 39, dated 31 March 2020). Accordingly, Paragraph 44 of the Implementation Guidance on Tax Effect Accounting has not been applied, and deferred tax assets and liabilities are measured based on the provisions of the tax laws before amendment.」

「The company and certain domestic consolidated subsidiaries have measured deferred tax assets and deferred tax liabilities based on the provisions of the tax laws before amendment, pursuant to Paragraph 3 of the Practical Solution on the Accounting and Tax Treatment of the Transition from the Consolidated Taxation System to the Group Tax Sharing System (ASBJ Practical Solution No. 39, 31 March 2020), for items relating to the transition to the group tax sharing system established under the Act Partially Amending the Income Tax Act and Other Acts (Act No. 8 of 2020) and the revisions to the single-entity taxation system made in conjunction with that transition.」

「The company and certain domestic consolidated subsidiaries have not applied the provisions of Paragraph 44 of the Implementation Guidance on Tax Effect Accounting (ASBJ Guidance No. 28, 16 February 2018), pursuant to Paragraph 3 of the Practical Solution on the Accounting and Tax Treatment of the Transition from the Consolidated Taxation System to the Group Tax Sharing System (ASBJ Practical Solution No. 39, 31 March 2020), for items relating to the transition to the group tax sharing system established under the Act Partially Amending the Income Tax Act and Other Acts (Act No. 8 of 2020) and the revisions to the single-entity taxation system made in conjunction with that transition. Deferred tax assets and deferred tax liabilities are measured based on the provisions of the tax laws before amendment.」

「The company and certain domestic consolidated subsidiaries have not applied the provisions of Paragraph 44 of the Implementation Guidance on Tax Effect Accounting (ASBJ Guidance No. 28, 16 February 2018), pursuant to Paragraph 3 of the Practical Solution on the Accounting and Tax Treatment of the Transition from the Consolidated Taxation System to the Group Tax Sharing System (ASBJ Practical Solution No. 39, 31 March 2020), for items relating to the transition to the group tax sharing system established under the Act Partially Amending the Income Tax Act and Other Acts (Act No. 8 of 2020) and the revisions to the single-entity taxation system made in conjunction with that transition. Deferred tax assets and deferred tax liabilities are measured based on the provisions of the tax laws before amendment.」

「The company and certain domestic consolidated subsidiaries have measured deferred tax assets and deferred tax liabilities based on the provisions of the tax laws before amendment, pursuant to Paragraph 3 of the Practical Solution on the Accounting and Tax Treatment of the Transition from the Consolidated Taxation System to the Group Tax Sharing System (ASBJ Practical Solution No. 39, 31 March 2020), for items relating to the transition to the group tax sharing system established under the Act Partially Amending the Income Tax Act and Other Acts (Act No. 8 of 2020) and the revisions to the single-entity taxation system made in conjunction with that transition.」

「The company and certain domestic consolidated subsidiaries have measured deferred tax assets and deferred tax liabilities based on the provisions of the tax laws before amendment, pursuant to Paragraph 3 of the Practical Solution on the Accounting and Tax Treatment of the Transition from the Consolidated Taxation System to the Group Tax Sharing System (ASBJ Practical Solution No. 39, 31 March 2020), for items relating to the transition to the group tax sharing system established under the Act Partially Amending the Income Tax Act and Other Acts (Act No. 8 of 2020) and the revisions to the single-entity taxation system made in conjunction with that transition.」