v3.25.2
Income Taxes (Tables)
12 Months Ended
Mar. 31, 2025
Income Tax Disclosure [Abstract]  
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 income1,049,539 1,267,190 2,203,143 
Total¥461,312 ¥1,878,226 ¥1,795,576 
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 
Foreign203,213 302,494 241,724 
Total453,993 409,445 360,157 
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 adjustments7,858 (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 adjustments85,074 155,814 (11,455)
Total20,795 339,505 (20,182)
Total¥67,546 ¥840,162 ¥507,756 
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 rate30.6 %30.6 %30.6 %
Nondeductible expenses1.1 0.4 0.4 
Impairment of goodwill2.2 — 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 subsidiary4.8 
(1)
— — 
Nontaxable dividends received(21.1)(4.1)(5.3)
Undistributed earnings of subsidiaries0.2 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 laws0.9 — 1.2 
Expiration of loss carryforward0.2 0.1 1.4 
Other—net2.9 0.2 — 
Effective income tax rate10.1 %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.
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 carryforwards93,134 86,747 
Loans— — 
Accrued liabilities and other386,583 328,371 
Premises and equipment122,705 113,572 
Derivative financial instruments530,127 649,519 
Obligations under operating leases86,288 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 
Loans2,186 3,466 
Intangible assets73,522 87,064 
Lease transactions12,240 16,866 
Defined benefit plans221,440 270,634 
Investments in subsidiaries and affiliates841,186 1,002,424 
Right-of-use assets of operating leases60,432 64,074 
Other74,821 81,284 
Total deferred tax liabilities2,015,208 2,167,917 
Net deferred tax liabilities¥(469,908)¥(631,545)
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 
2027886 292 
20281,833 153 
202913,175 346 
203067,607 183 
20317,143 247 
2032 and thereafter5,394 5,911 
No definite expiration date49,307 1,821 
Total¥199,246 ¥9,268 
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:
 202320242025
 
(in millions)
Balance at beginning of fiscal year¥21,794 ¥25,400 ¥10,521 
Gross amount of increases for current year’s tax positions451 32 — 
Gross amount of increases for prior years’ tax positions279 — 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 other3,158 1,808 2,430 
Balance at end of fiscal year¥25,400 ¥10,521 ¥50,780 
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:
 202320242025
 
(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 other371 311 815 
Balance at end of fiscal year¥2,167 ¥1,260 ¥305 
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:
JurisdictionTax years
Japan2023 and forward
United States—Federal2019 and forward
United States—California2017 and forward
Indonesia2019 and forward