1. Compliance

In addition to complying with the laws and regulations in the countries and regions where the Nisshinbo Group operates, we will conduct business activities in accordance with the tax guidelines published by international organizations such as the OECD. We will also maintain and improve our compliance system, pay appropriate taxes, and fulfill our corporate social responsibility.

2. Governance

The responsibility for tax governance lies with the Senior Manager of Finance, Accounting Department of Nisshinbo Holdings. We will establish and manage business processes and procedures related to tax practices, and properly realize governance related to tax laws.

3. Prohibition of tax avoidance act

We do not do tax planning with an intention to avoid tax, without business entity, or with an abnormal structure that does not fit the spirit of the law.

4. Relationships with Government and Tax Authorities

We strive to maintain a transparent and open relationship based on sincere cooperation with the tax authorities of the countries and regions where we operate. If there is a disagreement with the tax authorities, we will work with the authorities to resolve issues by finding an agreement.

5. Tax Planning

Tax planning is considered to be effective in managing all business activities, and costs are controlled in line with the purpose of legislation. We do not use countries or regions called tax havens for tax avoidance purposes, and allow business activities in those countries or regions only when there are essential business factors.

6. Application of preferential taxation system

Within the scope of normal business activities, we will apply available preferential taxation system and try to pursue tax efficiency. In addition, by examining double taxation minimization, measures to improve the recoverability of deferred tax assets, etc., we will examine whether there is a scope for reducing tax costs.

7. Transfer Pricing

Regarding cross-border intra-group transactions, Nisshinbo Group aims to allocate the profit properly among countries and its subsidiaries based on their value contribution defined by the analysis of the function, assets and risk assumed by each one, considering Arm’s Length Principle.