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

「We and certain consolidated subsidiaries have transitioned from the consolidated taxation system to the group relief system from the beginning of the first quarter of the current consolidated fiscal year.」

「From the beginning of the following consolidated fiscal year, we plan to apply Practical Response Report No. 42, Accounting and Disclosure Treatment When Applying the Group Tax-Sharing System, dated 12 August 2021, which prescribes the accounting and disclosure treatment for corporate and local corporate taxes and tax effect accounting when applying the group tax-sharing system.」

「Our company and certain consolidated subsidiaries have applied the treatment under Paragraph 3 of Practical Response Report No. 39, Treatment of the Application of Tax Effect Accounting for the Transition from the Consolidated Taxation System to the Group Tax-Sharing System, dated 31 March 2020, and have not applied the provisions of Paragraph 44 of the Implementation Guidance on Tax Effect Accounting, Accounting Standards Implementation Guidance No. 28, dated 16 February 2018, with respect to matters established under the Act Partially Amending the Income Tax Act and Other Acts (Act No. 8 of 2020) in connection with the transition to the group tax-sharing system and matters for which the single-entity taxation system was revised in conjunction with that transition. Accordingly, the amounts of deferred tax assets and deferred tax liabilities are based on the provisions of the tax laws before their amendment.」