Hong Kong game company ordered to pay $11m in back taxes in Japan

Japan's tax agency move highlights means to tax overseas digital content providers

20250218 Tokyo Regional Taxation Bureau

Japan made it mandatory for overseas providers of cross-border digital content to declare and pay consumption taxes on domestic sales since the 2015 fiscal year. (Photo by Tomoshizu Kawase)

Nikkei staff writers

TOKYO -- Japan's tax authority has ordered Yotta Games, a Hong Kong company that streams online games such as "Mafia City," to pay 1.8 billion yen ($11.85 million) in back taxes for three years through 2022, highlighting the authority's move to tax cross-border digital content transactions.

Yotta had evaded filing consumption tax returns for the sales in Japan, people familiar with the matter told Nikkei. The penalty slapped on the company by the Tokyo Regional Tax Bureau of the National Tax Agency includes an additional tax for not filing the return. Yotta Games did not respond to a request for comment.

Sponsored Content

About Sponsored ContentThis content was commissioned by Nikkei's Global Business Bureau.