Tax Policy of the Teijin Group
1. Tax Basic Policy
We, the Teijin Group, in accordance with the Code of Conduct established as the basisfor our actions to realize our corporate philosophy, act with integrity in compliance withlaws and regulations, and show respect for human rights and the local communities inwhich we operate.
In order to comply with laws and regulations regarding the tax practices of the countries,regions and multilaterals in which we operate, we have established a tax policy as a basic
standard for taxation. By paying taxes appropriately in accordance with this policy, we aim
to perform our social responsibilities and become a corporate group that can gain theunderstanding and sympathy of society at large while at the same time striving to increase
our corporate value.
2. Tax Governance structure
The Chief Financial Officer (CFO) is responsible for the Teijin Group’s tax governanceas part of our accounting and financial functions.
The status of the Teijin Group’s tax operations is reported to the CFO as appropriate andefforts are made thereunder to manage tax risks for the entire group.
3. Tax ComplianceWe always comply with laws and regulations regarding the tax practices of the countries,regions and multilaterals in which we operate, and conduct appropriate tax payments ineach of these countries and regions. Furthermore, we strive to respect the legislative intent
of such laws and regulations.
4. Transfer Pricing
By setting prices for international transactions between our group companies based on
arm’s length pricing in accordance with the OECD Transfer Pricing Guidelines, we strive toappropriately allocate profits earned through our business activities according to thefunctions and risks of our group companies. Furthermore, we prepare transfer pricing
documents in accordance with laws and regulations regarding the tax practices of thecountries, regions and multilaterals in which we operate.
5. Response to Tax Risks
Under the instruction of the CFO, we appropriately identify tax risks and handle them inaccordance with laws and regulations regarding the tax practices of the countries, regions
and multilaterals in which we operate. If there is uncertainty in the application orinterpretation of any tax laws, we seek the opinions of outside tax experts as necessary.
Moreover, regarding important tax issues, we strive to reduce tax risks throughconsultation with and reports to the tax authorities in each country or region.
6. Approach to Tax Planning and Tax Avoidance Actions
We comply with laws and regulations regarding the tax practices of the countries, regions
and multilaterals in which we operate, and to the extent permitted, strive to achieve
appropriate tax costs by utilizing preferential tax treatment and eliminating double taxation.
However, we will not and do not engage in intentional tax avoidance actions withoutbusiness substance, such as transferring profits to a country or region with no or low tax
rates (i.e. tax haven).
7. Relationship with Tax Authorities
We strive to establish sound and favorable relationships with tax authorities of thecountries and regions in which we operate by providing them with proper information in atimely manner. Also, if any differences of opinion arise with the tax authority of any country
or region, we proactively engage in dialogue to resolve such differences.
(Established on April 1, 2022)