Sumitomo Chemical Group Tax Policy
Sumitomo Chemical Group conducts business in a wide range of countries and regions
based on the Sumitomo Spirit which has been passed down through generations for over
400 years, the basic teaching of which is to contribute to society through its business activities.
The Sumitomo Chemical Group recognizes that tax payment is one of the most fundamental
and important social responsibilities that companies should fulfil. In accordance with thebelow fundamental policies, the group complies with the respective tax laws in each country
in which it operates, ensuring correct tax payment in the spirit of its business philosophy.
Through this, the group strives to build relationships of trust with various stakeholders andcontribute to the economic development of each country and region.

Legal Compliance
The Sumitomo Chemical Group will comply with all tax laws and regulations applicable
to all countries and regions in which business activities are conducted, and will file andpay taxes accordingly.

Tax Planning
The Sumitomo Chemical Group considers and implements tax planning measures inorder to improve the cash flow of the business, but such tax planning is done fully incompliance with the laws of each country, ensuring proper consideration of the businesscircumstances, and does not carry out tax planning for the purposes of tax avoidance.

Tax Havens
The Sumitomo Chemical Group understands that the use of countries or regions with
low tax rates or no tax payable (known as “tax havens”) will be to the detriment ofappropriate tax payments in each country. Therefore, the Group does not use tax havens
for the purposes of avoiding taxes but instead wishes to contribute to each country’s
economic development by appropriate payment of taxes.

Transfer Pricing
The Sumitomo Chemical Group sets transaction prices so that cross-border relatedparty transactions are carried out based on the arm’s length principle, in accordancewith the OECD Transfer Pricing Guidelines, in order to ensure the appropriate tax
payment in each country and region. The group also ensures regular review of theappropriateness of its profit allocation based on the functions, risks and assets of eachgroup company and the respective contribution each group company makes to the groupbusiness. The group also prepares transfer pricing documentation in accordance withthe relevant tax laws and regulations.

Uncertain Tax Positions
The Sumitomo Chemical Group conducts business globally, and in addition toconducting various types of transactions, there may be cases where taxation related
matters and tax positions may be unclear due to increasingly complex tax systems. For
such cases, the group will carefully consider each situation and strive to make decisions
that will minimize tax risk, such as by consulting with independent experts and utilizing
advance consultation procedures with tax authorities.

Relations with the Tax Authorities
In addition to the group ensuring appropriate filing and payment of tax in each country
and region, the Sumitomo Chemical Group will also endeavor to build and maintain goodrelationships with tax authorities by responding in good faith to their requests.