Tax Policy

KOITO MANUFACTURING CO., LTD. ("KOITO") and its subsidiaries ("the KOITO Group") comply with tax codes as well as relevant laws and regulations, file the proper tax returns and pay taxes in each country and region where we conduct business.
The KOITO Group does not engage in tax avoidance using tax havens, or use tax planning that does not coincide with business conditions.

The KOITO Group works to comply with the tax laws, systems and administrative operations in each country with the cooperation of its Group companies in an effort to minimize tax risks.
The tax risks of the KOITO Group are managed under the discretion of the Chief Financial Officer according to reports from each Group company.
In addition, the KOITO Group will seek the advice and guidance of external experts for any complex risks or grave matters of concern and will respond to such risks and matters after investigation, evaluation and deliberation.

The KOITO Group will adhere to arm's length transaction principles with an understanding of the OECD Transfer Pricing Guidelines and domestic tax Base Erosion and Profit Shifting (BEPS), to set the price of transactions between Group companies.
In addition, the KOITO Group will seek the advice and guidance of external experts as necessary to reduce the tax risks related to transfer pricing.

The KOITO Group applies tax treaties to eliminate dual taxation on the same economic profits from multiple countries and regions.

The KOITO Group responds appropriately to any inquiries and requests for information from the tax authorities in each country and region where it does business, with good faith and in a timely manner, in an effort to build and maintain good trust with tax authorities.
If any question arises between the KOITO Group and tax authority about tax practices, our understanding of tax codes, or other tax-related matters, the KOITO Group will work with the relevant tax authority to resolve the matter in question.