Technology

Google and Microsoft evade fines in Japan by registering global headquarters

According to the latest report, Google, Microsoft, and 11 other multinational companies have taken action to register their global headquarters in accordance with Japanese law. Under Japanese law, foreign companies that continue to do business in Japan must register their overseas headquarters in the country for tax and consumer protection purposes.

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But many tech multinationals have only registered Japanese branches. In June, it was reported that Japan’s Ministry of Justice had asked 48 companies to submit written documents in March. A total of 31 companies have expressed willingness to comply with the rule, including Google, Meta Platforms, and Twitter. Japan’s Justice Ministry said 13 companies had applied for registration before Friday’s deadline.

As of Monday afternoon, six of the 13 companies had completed the registration process, including Google and Microsoft. Four more companies have indicated to Japan’s Ministry of Internal Affairs and Communications that they will cease operations in Japan and are therefore no longer subject to registration requirements. The remaining 14 companies have yet to submit applications.

Japan’s Ministry of Justice plans to fine companies up to 1 million yen ($7,300) for failing to register as required. They told the Tokyo District Court in late June that seven companies would be punished for ignoring or refusing to comply with the rules.

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