Nippon Sanso Holdings Group Global Tax Policy
We understand that it is our social responsibility to comply with the tax laws and regulations of,and contribute through tax payments to the development of, all the countries and regions weoperate in. Therefore, we are committed to addressing the interests of various stakeholders
through legal compliant, timely and appropriate tax payments and proper and highly transparent
tax management to ensure such compliance and tax payment.
1.

Compliance

We fulfil our tax payment obligations in the countries and regions it operates in. In doing so, wealways comply with tax laws and regulations in these countries and regions and respect thespirit of the law.
2.

Transparency

We strive to provide transparency into its tax affairs by disclosing tax related information inaccordance with the tax laws and regulations of the countries and regions we operate in.
3.

Minimization of Tax Risks

We strive to minimize our tax risks by appropriately responding to revisions to the tax systems
and changes in the tax administrations in the countries and regions we operate in, and byobtaining opinions of external experts and utilizing prior confirmation system as necessary.
4.

Tax Planning

We do not enter into artificial tax arrangements for the purpose of tax avoidance or which lackcommercial rationale.
5.

Transfer Pricing

We give due consideration to the arm’s length principle in executing international related party
transactions and ensure profits are appropriately allocated according to the functions performed,
the risks borne, and the assets held by our group companies so that we can achieve appropriate
tax payments in the countries and regions they operate in. We also comply with the laws andregulations on transfer pricing documentation in the countries and regions we operate in.
6.

Tax Havens

We do not avoid taxes using countries or regions with no tax or low tax rates (so-called “taxhavens”).

7.

Elimination of Double Taxation

We seek to eliminate economic double taxation (where tax is paid two or more times on thesame source of economic income) through the use of tax treaties and constructive dialogue
between the relevant countries.
8.

Relationship with Tax Authorities

We aim to establish and maintain sound and good relationships through providing tax
authorities in the countries and regions we operate in with the information in a cooperative andappropriate manner as well as through constructive dialogue.
9.

Tax GovernanceOur tax governance is ultimately the responsibility of the Chief Financial Officer (CFO) ofNippon Sanso Holdings Corporation. Practical management of tax governance is delegated tothe tax departments of our group companies. The General Manager of Accounting Division,
Group Finance & Accounting of Nippon Sanso Holdings Corporation supervises significant taxadministration and tax risk management for all group companies. If the financial affairs orbusiness operations of our group companies are materially affected as a result of a tax
examination by a tax authority, our group companies report the details to the tax supervisor andthe tax supervisor requires our group companies to report their practical management of tax
governance, as necessary. Our group companies appropriately prepare and manage tax related
documents such as tax returns by ensuring an appropriate system of internal controls andproperly responding to tax system revisions, etc.
This policy may be revised or abolished by the Board of Directors of the Company.
Established on February 2nd, 2021