Tax Transparency

Basic policy

The AMADA Group will strive to comply with the laws and regulations of all countries and regions in which it conducts business and pay appropriate taxes. In addition, under the Management Philosophy to “conduct sound corporate activities based on high ethics and fairness,” we will contribute to the economic development of each country and region by ensuring tax transparency and paying appropriate taxes.

Policy on tax transparency

1. Tax governance

The Finance Department of AMADA CO., LTD. will collaborate with related departments and Group companies under the supervision of the director in charge of finance, who is ultimately responsible for tax governance.

2. Tax compliance

We will comply with tax-related laws and regulations applicable in all countries and regions where we conduct business activities, file appropriate tax returns, and pay taxes. We also strive to respect both the letter and spirit of the laws.

3. Tax risk management

Tax laws and regulations in the countries and regions where we conduct business are complex, and tax risks exist due to their room for interpretation. For complex matters, we consult with external tax advisors to avoid risks.

4. Tax planning

We do not engage in intentional tax avoidance or tax planning that is abusive by taking advantage of tax havens in regions where we have no actual business presence.

5. Transfer pricing

In compliance with the Organisation for Economic Co-operation and Development (OECD) Transfer Pricing Guidelines, we will strive to avoid double taxation internationally by conducting transactions among Group companies at arm’s length prices appropriate to their functions and risks.

6. Application of tax incentives

We will strive to reduce tax costs through the application of appropriate tax incentives in compliance with applicable tax laws and regulations in each country and region.

7. Relations with tax authorities

We will strive to file appropriate tax returns and pay taxes in each country and region, respond with sincerity to requests from tax authorities, and build and maintain good relationships with them. If differences of opinion with the tax authorities arise, we will endeavor to resolve them through constructive dialogue.