Japanese retailer Ryohin Keikaku Co. Ltd., which sells products under the Muji brand, plans to move its European headquarters out of the U.K. as it weighs the risks from Brexit, Bloomberg News reported Sept. 4, citing a person with knowledge of the situation.
The source told the news outlet that the company, which employs about 50 people in its London office, is considering Germany as a potential base.
Bloomberg noted that under Japanese law, if a subsidiary pays less than 20% tax in a foreign country, it could be subject to further taxes in Japan.
If confirmed, Ryohin Keikaku will be the second Japanese company to move away from the U.K. after Panasonic Corp. recently disclosed plans to shift its London headquarters to Amsterdam to avoid potential tax issues that may arise from Britain's exit from the European Union.
Meanwhile, a spokeswoman for Ryohin Keikaku told Bloomberg in an email that the company is considering all available options as it reviews risks related to Brexit. The spokeswoman said the retailer has not yet decided on the move.