Apple and Google on hook for foreign app tax in Japan code proposal

Government targets platform operators as route to hard-to-reach small developers

20231114N app stores

Google and Apple will be required to pay consumption taxes on behalf of app developers based overseas. (Photo by Masaharu Ban)

KO FUJIOKA, Nikkei staff writer

TOKYO -- Japan will make app store operators like Apple and Google responsible for paying consumption taxes on content sold by foreign developers, to more effectively recover levies collected by small companies with no physical presence in Japan.

The change, which was detailed in a Finance Ministry report released Tuesday, aims to create a more level playing field for Japan-based content creators that can more easily be taxed directly.

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