v3.26.1
Income taxes
 12 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
Income taxes
17. Income taxes:
The following table presents a disaggregation of
Income tax expense
as reported in the consolidated statements of income for the years ended March 31, 2024 and 2025 between current and deferred tax expenses and between domestic income tax benefits or expenses recognized by the Company and other subsidiaries in Japan and income tax benefits or expenses recognized by overseas foreign subsidiaries.
 
 
  
Millions of yen
 
 
  
Year ended March 31
 
 
  
2024
 
 
2025
 
Current:
  
 
Domestic
    ¥ 74,117     ¥ 89,845  
Foreign
      22,825       23,305  
  
 
 
    
 
 
  
Subtotal
      96,942       113,150  
  
 
 
    
 
 
  
Deferred:
     
Domestic
      2,566       9,784  
Foreign
      (2,878 )      1,775  
  
 
 
    
 
 
  
Subtotal
      (312 )      11,559  
  
 
 
    
 
 
  
Total
    ¥  96,630     ¥ 124,709  
  
 
 
    
 
 
  
Nomura adopted ASU 2023-09 “
Income Taxes (Topic 740): Improvements to Income Tax Disclosures
” prospectively for the year ended March 31, 2026. The ASU has introduced new disclosures, including a breakdown of income before income taxes between domestic and foreign operations and has also made certain changes to the disclosure of the reconciliation of the domestic Japanese national statutory tax rate to the effective tax rate and tax paid.
The following table presents a disaggregation of
Income before income taxes as
reported in the consolidated statement of income for the year ended March 31, 2026 between domestic and foreign operations. See Note 23 “
Segment and geographic information”
for details of
Income before income taxes
by geographical locations.
 
 
  
Millions of yen
 
 
  
Year ended

March 31
 
 
  
2026
 
Income before income taxes:
  
Domestic
  
¥
448,291
 
Foreign
  
 
91,530
 
  
 
 
 
Total
  
 ¥
539,821
 
 
 
 
 
 
 
The following table presents a disaggregation of
Incom
e tax exp
ense
as reported in the consolidated statement of income for the year ended March 31, 2026, by the nature of the tax expense and specifically whether such tax expense is incurred in
con
nection with domestic Japanese national, domestic Japanese local taxes or foreign taxes. Foreign tax expense amounts represent income tax expenses imposed by jurisdictions outside Japan.
 
 
  
Millions of yen
 
 
  
Year ended

March 31
 
 
  
2026
 
Current:
 
 
 
 
Domestic national tax
 
 ¥  108,070
 
Domestic local tax
 
 
 23,725
 
Foreign taxes
 
 
 25,295
 
  
 
 
  
Subtotal
 
 
 157,090
 
  
 
 
  
Deferred:
  
Domestic national tax
  
 
19,936
 
Domestic local tax
  
 
6,163
 
Foreign taxes
  
 
(17,750
)
 
  
 
 
 
Subtotal
  
 
8,349
 
  
 
 
 
Total Income Tax expense (benefit)
  
Domestic national tax
  
 
128,006
 
Domestic local tax
  
 
29,888
 
Foreign taxes
  
 
7,545
 
  
 
 
 
Total
  
¥
165,439
 
  
 
 
 
The income tax benefit recognized from operating losses for the years ended March 31, 2024, 2025 and 2026 was ¥1,901 million, ¥6,086 million and ¥5,298 million, respectively, which is included within deferred income tax expense above.
The Company and its wholly-owned domestic subsidiaries have applied the Group Tax Sharing system in Japan. The Group Tax Sharing system is only available for a national tax.
Effective statutory tax rate reconciliation
Foreign subsidiaries are subject to income taxes of the countries in which they operate. The relationship between income tax expense and accounting income (loss) before income taxes is affected by a number of items, including various tax credits, non-taxable income, non-deductible expenses, changes in deferred tax valuation allowance and different tax rates applicable to foreign subsidiaries.
 
 
The following table presents a reconciliation of Nomura’s effective statutory tax rate to the effective tax rate for the years ended March 31, 2024 and 2025, and is based on applicable U.S. GAAP requirements prior to the adoption of ASU 2023-09. Nomura’s effective statutory tax rate represents the blended rate that combines the Japanese national tax rate and other Japanese local taxes. The effective tax rate represents total
Income
tax
expense
as a percentage of
Income (loss) before income taxes
as reported in the consolidated statement of income for the years presented.
                 
 
  
Year ended March 31
 
 
  
2024
 
  
2025
 
Nomura’s effective statutory tax rate
      31.0 %       31.0 % 
Impact of:
      
Changes in deferred tax valuation allowances
      3.9        (5.3 ) 
Additional taxable income
      0.2        1.3  
Non-deductible
expenses
      6.0        3.2  
Non-taxable
income
      (2.5 )       (1.6 ) 
Dividends from foreign subsidiaries
      0.0        0.0  
Tax effect of undistributed earnings of foreign subsidiaries
      (0.2 )       0.0  
Different tax rate applicable to income (loss) of foreign subsidiaries
      (0.2 )       (2.5 ) 
Effect of changes in foreign tax laws
      0.0        0.0  
Effect of changes in domestic tax laws
     
— 
        0.4  
Tax benefit recognized on the outside basis differences for investment in subsidiaries and affiliates
      (0.0 )       (0.0 ) 
Other
      (2.9 )       (0.1 ) 
  
 
 
     
 
 
  
Effective tax rate
      35.3 %       26.4 % 
  
 
 
     
 
 
  
The following table presents a reconciliation of the expected Japanese national income tax expense, calculated by applying the Japanese national statutory tax rate, to Nomura’s actual income tax expense, and the effective tax rate for the year ended March 31, 2026. The effective tax rate represents total
Income tax expense
as a percentage of
Income (loss) before income taxes
as reported in the consolidated statement of income for the year ended March 31, 2026.
                 
 
  
Millions of yen
 
 
  
Year ended

March 31
 
 
  
2026
 
 
  
Amount
 
  
Percent
 
Japan national statutory tax rate
  
¥
138,194
 
  
 
25.6
% 
Japan local tax, net of national tax effect
(1)
  
 
29,213
 
  
 
5.4
 
Increase/(decrease) in taxes resulting from:
 
 
 
 
 
 
 
 
Foreign tax effects
  
      
  
      
U.S.
  
      
  
      
Changes in deferred tax valuation allowances
(2)
  
 
(43,725
)
  
 
(8.1
)
Other
  
 
2,159
 
  
 
0.4
 
U.K.
  
 
            
Changes in deferred tax valuation allowances
  
 
9,717
 
  
 
1.8
  
Other
  
 
(1,619
)
  
 
(0.3
)
India
  
 
          
 
Undistributed earnings of foreign subsidiaries
  
 
7,557
 
  
 
1.4
 
Other
  
 
540
 
  
 
0.1
 
 
                 
 
  
Millions of yen
 
 
  
Year ended

March 31
 
 
  
2026
 
 
  
Amount
 
  
Percent
 
Other jurisdictions
  
 
6,478
 
  
 
1.2
  
 
  
 
 
 
  
 
 
 
Non-deductible expenses
 
 
 
 
 
 
 
 
Stock-based compensation awards
  
 
10,610
 
  
 
2.0
 
Other
 
 
 3,426
 
 
 
0.6
 
Changes in deferred tax valuation allowances
  
 
4,319
 
  
 
0.8
 
Non-taxable
income
  
 
(2,699
 ) 
  
 
(0.5
 )
Tax credits
  
 
(2,699
)
  
 
(0.5
 ) 
Effect of cross-border tax laws
  
   3,239  
  
   0.6  
Unrecognized tax benefit
  
 
5,039
 
  
 
0.9
 
Other
  
 
(4,310
)
  
 
(0.8
 )
 
  
 
 
 
  
 
 
 
Effective tax rate
  
¥
165,439
 
  
 
30.6
 % 
  
 
 
    
 
 
  
 
(1)
The tax effects in this category primarily relate to local Japanese taxes arising in Tokyo
(2)
Primarily due to improved profitability and increase in taxable temporary differences resulted in release of certain valuation allowance.
The following table presents a disaggregation of total income tax paid to taxing authorities (net of refunds received) for the year ended March 31, 2026 between domestic Japanese national taxes, domestic Japanese local taxes and foreign taxes.
 
    
Millions of yen
  
    
Year ended
March 31
  
    
2026
  
Domestic National Tax
    ¥ 74,617  
  
 
 
  
Domestic Local Tax
   
Tokyo
      13,182  
Other
      7,979  
Subtotal
      21,161  
  
 
 
  
Foreign Tax
      23,074  
  
 
 
  
Total
    ¥ 118,852  
  
 
 
  
 
 
The following table presents the significant components of deferred tax assets and liabilities as of March 31, 2025 and 2026, before offsetting of amounts which relate to the same
tax-paying
component within a particular tax jurisdiction.
 
 
  
Millions of yen
 
 
  
March 31
 
 
  
2025
 
  
2026
 
Deferred tax assets
  
      
  
      
Depreciation, amortization and valuation of fixed assets
    ¥ 38,105     ¥ 43,007  
Investments in subsidiaries and affiliates
      310       3,604  
Valuation of financial instruments
      123,754       128,286  
Accrued pension and severance costs
      6,571       5,224  
Other accrued expenses and provisions
      86,813       118,047  
Operating losses
      462,392       477,481  
Lease liabilities
      45,937       39,964  
Other
      19,994       20,477  
  
 
 
    
 
 
  
Gross deferred tax assets
      783,876       836,090  
Less
—
Valuation allowances
      (571,017 )      (588,426 )
  
 
 
    
 
 
  
Total deferred tax assets
      212,859       247,664  
  
 
 
    
 
 
  
Deferred tax liabilities
     
Investments in subsidiaries and affiliates
      120,341       129,826  
Valuation of financial instruments
      107,997       98,372  
Undistributed earnings of foreign subsidiaries
      3,014       17,816  
Valuation of fixed assets and intangible assets
      22,930       58,329  
Right-of-use
assets
      41,413       35,219  
Other
      5,760       13,030  
  
 
 
    
 
 
  
Total deferred tax liabilities
      301,455       352,592  
  
 
 
    
 
 
  
Net deferred tax assets (liabilities)
    ¥ (88,596 )    ¥ (104,928 )
 
  
 
 
    
 
 
  
After offsetting deferred tax assets and liabilities which relate to the same
tax-paying
component within a particular tax jurisdiction, net deferred tax assets reported within
Other assets
—
Other
in the consolidated balance sheets were ¥25,224 million and ¥41,778 million as of March 31, 2025 and 2026, respectively and net deferred tax liabilities reported within
Other liabilities
in the consolidated balance sheets were ¥113,820 million and ¥146,706 million as of March 31, 2025 and 2026, respectively.
As of March 31, 2026, no deferred tax liabilities have been recognized for undistributed earnings of foreign subsidiaries which are not expected to be remitted in the foreseeable future. It is not practicable to determine the amount of income taxes payable in the event all such foreign earnings are repatriated.
 
 
Deferred taxes
The following table presents changes in total valuation allowances recognized against deferred tax assets for the years ended March 31, 2024, 2025 and 2026.
 
    
Millions of yen
  
    
Year ended March 31
  
    
2024
    
2025
    
  2026  
  
Balance at beginning of year
    ¥ 515,068     ¥ 595,668     ¥ 571,017  
Net change during the year
      80,600
(1)
 		     (24,651 )
(2)
 		     17,409
(3)
 
  
 
 
    
 
 
    
 
 
  
Balance at end of year
    ¥ 595,668     ¥ 571,017     ¥ 588,426  
  
 
 
    
 
 
    
 
 
  
 
(1)
Primarily includes an increase of ¥83,838 million of valuation allowances on deferred tax assets of certain foreign subsidiaries primarily due to an increase in operating loss carryforwards, and a reduction of ¥3,238 million of valuation allowances on deferred tax assets related to Japanese subsidiaries and the Company primarily due to a utilization of loss carryforwards. In total, ¥80,600 million of allowances increased.
(2)
Primarily includes a decrease of ¥21,610 million of valuation allowances on deferred tax assets of certain foreign subsidiaries primarily due to a decrease in operating loss carryforwards, and a reduction of ¥3,041 million of valuation allowances on deferred tax assets related to Japanese subsidiaries and the Company primarily due to a utilization of loss carryforwards. In total, ¥24,651 million of allowances decreased.
(3)
Primarily includes an increase of ¥12,691 million of valuation allowances on deferred tax assets primarily related to valuation of financial instruments of certain foreign subsidiaries. While valuation allowances on deferre
d tax
assets of foreign subsidiaries related to operating loss carryforwards had increases due to foreign exchange, valuation allowances of certain foreign subsidiaries had decreases in operating loss carryforwards due to utilization by improved profitability, resulting in an immaterial net change during the year. In addition, there was an increase of ¥4,718 million of valuation allowances on deferred tax assets related to Japanese subsidiaries and the Company primarily due to an increase of valuation allowances of Investments in subsidiaries and affiliates. In total, ¥17,409 million of allowances increased.
As of March 31, 2026, total operating loss carryforwards were ¥2,308,076 million, which included ¥307,780 million relating to the Company and domestic subsidiaries, ¥852,730 million relating to foreign subsidiaries in U.K., ¥665,526 million relating to foreign subsidiaries in U.S., ¥380,924 million relating to foreign subsidiaries in Hong Kong, and ¥101,116 million relating to foreign subsidiaries in other tax jurisdictions. Of this total amount, ¥1,539,348 million can be carried forward indefinitely, ¥729,875 million expires by March 31, 2036 and ¥38,853 million expires in later fiscal years.
In determining the amount of valuation allowances to be recognized as of March 31, 2026, Nomura considered all available positive and negative evidence around the likelihood that sufficient future taxable income will be generated to realize the deferred tax assets in the relevant tax jurisdiction of the Company, its domestic subsidiaries and foreign subsidiaries. In Japan and other tax jurisdictions where certain domestic and foreign subsidiaries have experienced cumulative operating losses in recent years, these losses provide the most verifiable negative evidence available and outweigh positive evidence. On the other hand, for certain foreign subsidiaries of the Company upon review and weighing in available positive evidences, we determined that it is more likely than not that a portion of the deferred tax assets related to operating loss carryforwards should be realized. Accordingly, we released a portion of the valuation allowances against those deferred tax assets.
 
While Nomura has considered certain future tax planning strategies as a potential source of future taxable income, such strategies are not relied upon as significant positive evidence resulting in a reduction of valuation allowances in any major tax jurisdiction in which Nomura operates as of March 31, 2025 and 2026. In addition, valuation allowances have not been significantly reduced in any of these periods as a result of changing the weighting applied to positive or negative evidence in any of the major tax jurisdictions in which Nomura operates by certain tax planning strategies.
The determination of whether deferred tax assets will be realized, and therefore whether a valuation allowance is required, is inherently subjective and often requires management judgment around the future profitability of Nomura entities, an interpretation of tax rules by courts and regulatory authorities and tax examinations by taxing authorities, and the appropriate weighting of positive and negative evidence around the likelihood that sufficient future taxable income will be generated to realize deferred tax assets in the relevant tax jurisdiction.
As a result
 
of the Macquarie Acquisition, deferred tax assets and deferred tax liabilities of ¥
10,479
 million and ¥
11,820
 million, respectively, were assumed and additional deferred tax assets and deferred tax liabilities of ¥
929
 million and ¥
14,476
 million, respectively recognized as of March 31, 2026. These arose from recognition of additional employee liabilities and intangible assets as part of the acquisition. The expected reversal of the assumed and established net deferred tax liabilities led to a valuation allowance release of ¥
12,769
 million.
Unrecognized tax benefits
The following table presents changes in Nomura’s unrecognized tax benefits for the years ended March 31, 2024, 2025 and 2026.
 
                         
 
  
Millions of yen
 
 
  
Year ended March 31
 
 
  
2024
 
 
2025
 
 
2026
 
Balance at beginning of year
    ¥ 34,763     ¥ 41,437     ¥ 48,462  
Increases based on tax positions related to the current period
      5,076       6,791       8,551  
Increases based on tax positions related to the prior periods
      608       866       17  
Decreases related to lapse of the applicable statute of limitations
      (3,812 )     
—
 		       (1,957 ) 
Exchange rate fluctuations
      4,802       (632 )      3,433  
  
 
 
    
 
 
    
 
 
  
Balance at end of year
    ¥ 41,437     ¥ 48,462     ¥ 58,506  
  
 
 
    
 
 
    
 
 
  
The amounts of unrecognized tax benefits which would reduce Nomura’s effective tax rate in future periods if recognized for the years ended March 31, 2024, 2025, and 2026, were ¥10,057 million, ¥17,561 million, and ¥
25,658
 million, respectively. The remaining balance would not impact the effective tax rate as it is expected to increase operating loss carryforwards and corresponding valuation allowance.
There were also no significant movements of the amount of interest and penalties recognized due to unrecognized tax benefits during the years ended March 31, 2024, and 2025. During the year ended March 31, 2026, the total amount of unrecognized tax benefits includes ¥1,493 million of interest, and there was no movement in the amount of penalties.
Examinations by taxing authorities
Nomura operates in multiple tax jurisdictions and faces audits from various taxing authorities regarding many issues including, but not limited to, transfer pricing, the deductibility of certain expenses, foreign tax credits and other matters.
 
The table below presents information regarding the earliest year in which Nomura remains subject to examination in the major tax jurisdictions in which Nomura operates as of March 31, 2026.
 
Jurisdiction
   
Year ended March 31,
  
Japan
      2021
(1)
 
United Kingdom
      2016
(2)
 
United States
      2023  
India
 
 
 2020
(3)
 
Singapore
 
 
 2021
 
 
(1)
The earliest year in which Nomura remains subject to examination for transfer pricing issues is the year ended March 31, 2019.
(2)
The earliest year in which Nomura remains subject to examination for transfer pricing issues is the year ended March 31, 2016.
(3)
The earliest year in which Nomura remains subject to examination for transfer pricing issues is the year ended March 31, 2008.