Income Taxes (Tables)
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12 Months Ended |
Mar. 31, 2025 |
Income Tax Disclosure [Abstract] |
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Income before Income Tax Expense by Jurisdiction |
Income before income tax expense by jurisdiction for the fiscal years ended March 31, 2023, 2024 and 2025 was as follows: | | | | | | | | | | | | | | | | | | | 2023 (As Adjusted) | | 2024 (As Adjusted) | | 2025 | | (in millions) | Domestic income (loss) | ¥ | (588,227) | | | ¥ | 611,036 | | | ¥ | (407,567) | | Foreign income | 1,049,539 | | | 1,267,190 | | | 2,203,143 | | Total | ¥ | 461,312 | | | ¥ | 1,878,226 | | | ¥ | 1,795,576 | |
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Details of Current and Deferred Income Tax Expense (Benefit) |
The detail of current and deferred income tax expense for the fiscal years ended March 31, 2023, 2024 and 2025 was as follows: | | | | | | | | | | | | | | | | | | | 2023 (As Adjusted) | | 2024 (As Adjusted) | | 2025 | | (in millions) | Current: | | | | | | Domestic | ¥ | 250,780 | | | ¥ | 106,951 | | | ¥ | 118,433 | | Foreign | 203,213 | | | 302,494 | | | 241,724 | | Total | 453,993 | | | 409,445 | | | 360,157 | | Deferred: | | | | | | Domestic | (346,367) | | | 87,990 | | | 103,533 | | Foreign | (60,875) | | | 3,222 | | | 64,248 | | Total | (407,242) | | | 91,212 | | | 167,781 | | Income tax expense | 46,751 | | | 500,657 | | | 527,938 | | Income tax expense (benefit) reported in Accumulated OCI relating to: | | | | | | Investment securities | (59,568) | | | 33,327 | | | (46,184) | | Debt valuation adjustments | 7,858 | | | (19,707) | | | 4,941 | | Derivatives qualifying for cash flow hedges | (2,268) | | | (120) | | | (436) | | Defined benefit plans | (10,301) | | | 170,191 | | | 32,952 | | Foreign currency translation adjustments | 85,074 | | | 155,814 | | | (11,455) | | Total | 20,795 | | | 339,505 | | | (20,182) | | Total | ¥ | 67,546 | | | ¥ | 840,162 | | | ¥ | 507,756 | |
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Reconciliation of Effective Income Tax Rate |
A reconciliation of the effective income tax rates reflected in the accompanying consolidated statements of income to the combined normal effective statutory tax rates for the fiscal years ended March 31, 2023, 2024 and 2025 is as follows: | | | | | | | | | | | | | | | | | | | | | | 2023 (As Adjusted) | | 2024 (As Adjusted) | | 2025 | | Combined normal effective statutory tax rate | 30.6 | % | | 30.6 | % | | 30.6 | % | | Nondeductible expenses | 1.1 | | | 0.4 | | | 0.4 | | | Impairment of goodwill | 2.2 | | | — | | | 2.4 | | | Foreign tax credit and payments | (6.7) | | | 0.9 | | | 0.2 | | | Lower tax rates applicable to income of subsidiaries | (4.1) | | | (1.5) | | | (2.5) | | | Change in valuation allowance | (1.3) | | | (1.4) | | | 0.3 | | | Taxation for gain on sale of shares in subsidiary | 4.8 | | (1) | — | | | — | | | Nontaxable dividends received | (21.1) | | | (4.1) | | | (5.3) | | | Undistributed earnings of subsidiaries | 0.2 | | | 0.9 | | | 1.8 | | | Tax and interest expense for uncertainty in income taxes | — | | | — | | | 1.7 | | | Tax penalty and tax refund | — | | | — | | | (2.9) | | (2) | Noncontrolling interest income | 0.4 | | | 0.6 | | | 0.1 | | | Effect of changes in tax laws | 0.9 | | | — | | | 1.2 | | | Expiration of loss carryforward | 0.2 | | | 0.1 | | | 1.4 | | | Other—net | 2.9 | | | 0.2 | | | — | | | Effective income tax rate | 10.1 | % | | 26.7 | % | | 29.4 | % | |
Notes: (1)In March 2023, MUAH repurchased a portion of the shares in MUAH held by MUFG and MUFG Bank. The transaction resulted in the realization of a difference between the book value of the shares in MUAH for accounting and tax purposes, resulting in a ¥22,250 million increase of income tax expense and a 4.8 percentage points increase in the effective tax rate for the fiscal year ended March 31, 2023. (2)For the fiscal year ended March 31, 2025, MUAH recognized a tax benefit of ¥52,129 million related to the amendment of the California state tax return, resulting in a 2.9 percentage points decrease in the effective tax rate.
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Components of Net Deferred Tax Assets |
The tax effects of the items comprising the MUFG Group’s net deferred tax assets at March 31, 2024 and 2025 were as follows: | | | | | | | | | | | | | 2024 (As Adjusted) | | 2025 | | (in millions) | Deferred tax assets: | | | | Allowance for credit losses | ¥ | 457,344 | | | ¥ | 390,614 | | Operating loss carryforwards | 93,134 | | | 86,747 | | Loans | — | | | — | | Accrued liabilities and other | 386,583 | | | 328,371 | | Premises and equipment | 122,705 | | | 113,572 | | Derivative financial instruments | 530,127 | | | 649,519 | | Obligations under operating leases | 86,288 | | | 89,790 | | Valuation allowance | (130,881) | | | (122,241) | | Total deferred tax assets | ¥ | 1,545,300 | | | ¥ | 1,536,372 | |
| | | | | | | | | | | | | 2024 (As Adjusted) | | 2025 | | (in millions) | Deferred tax liabilities: | | | | Investment securities (including trading account assets at fair value under the fair value option) | 729,381 | | | 642,105 | | Loans | 2,186 | | | 3,466 | | Intangible assets | 73,522 | | | 87,064 | | Lease transactions | 12,240 | | | 16,866 | | Defined benefit plans | 221,440 | | | 270,634 | | Investments in subsidiaries and affiliates | 841,186 | | | 1,002,424 | | Right-of-use assets of operating leases | 60,432 | | | 64,074 | | Other | 74,821 | | | 81,284 | | Total deferred tax liabilities | 2,015,208 | | | 2,167,917 | | Net deferred tax liabilities | ¥ | (469,908) | | | ¥ | (631,545) | |
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Operating Loss Carryforwards and Tax Credit Carryforwards |
Such carryforwards, if not utilized, are scheduled to expire as follows: | | | | | | | | | | | | | Operating loss carryforwards | | Tax credit carryforwards | | (in millions) | Fiscal year ending March 31: | | | | 2026 | ¥ | 53,901 | | | ¥ | 315 | | 2027 | 886 | | | 292 | | 2028 | 1,833 | | | 153 | | 2029 | 13,175 | | | 346 | | 2030 | 67,607 | | | 183 | | 2031 | 7,143 | | | 247 | | 2032 and thereafter | 5,394 | | | 5,911 | | No definite expiration date | 49,307 | | | 1,821 | | Total | ¥ | 199,246 | | | ¥ | 9,268 | |
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Roll-forward of Unrecognized Tax Benefits |
The following is a roll-forward of the MUFG Group’s unrecognized tax benefits for the fiscal years ended March 31, 2023, 2024 and 2025: | | | | | | | | | | | | | | | | | | | 2023 | | 2024 | | 2025 | | (in millions) | Balance at beginning of fiscal year | ¥ | 21,794 | | | ¥ | 25,400 | | | ¥ | 10,521 | | Gross amount of increases for current year’s tax positions | 451 | | | 32 | | | — | | Gross amount of increases for prior years’ tax positions | 279 | | | — | | | 40,882 | | Gross amount of decreases for prior years’ tax positions | (166) | | | (16,719) | | | (23) | | Net amount of changes relating to settlements with tax authorities | — | | | — | | | (2,258) | | Decreases due to lapse of applicable statutes of limitations | (116) | | | — | | | (772) | | Foreign exchange translation and other | 3,158 | | | 1,808 | | | 2,430 | | Balance at end of fiscal year | ¥ | 25,400 | | | ¥ | 10,521 | | | ¥ | 50,780 | |
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Roll-forward of Interest and Penalties Recognized |
The following is a roll-forward of the interest and penalties recognized in the accompanying consolidated financial statements for the fiscal years ended March 31, 2023, 2024 and 2025: | | | | | | | | | | | | | | | | | | | 2023 | | 2024 | | 2025 | | (in millions) | Balance at beginning of fiscal year | ¥ | 2,848 | | | ¥ | 2,167 | | | ¥ | 1,260 | | Total interest and penalties in the consolidated statements of income | (1,052) | | | (1,218) | | | (1,770) | | Total cash settlements, foreign exchange translation and other | 371 | | | 311 | | | 815 | | Balance at end of fiscal year | ¥ | 2,167 | | | ¥ | 1,260 | | | ¥ | 305 | |
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Status of Years under Audit or Open to Examination by Major Tax Jurisdictions |
The following are the major tax jurisdictions in which the MUFG Group operates and the status of years under audit or open to examination: | | | | | | Jurisdiction | Tax years | Japan | 2023 and forward | United States—Federal | 2019 and forward | United States—California | 2017 and forward | Indonesia | 2019 and forward |
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