Resonac Group’s Tax Code of Conduct

The Resonac Group, in accordance with its Purpose of “Change society through the power of chemistry,” will contribute to the sustainable development of global society by creating functions required by the times as an advanced material partner.

We set our tax code of conduct as follows to fulfill our taxpaying duty in an appropriate manner.

1. Basic philosophy

The Resonac Group recognizes that the contribution to society’s growth through tax payment in all countries and regions where we conduct our business activities is one of our social responsibilities as an enterprise.

2. Compliance

The Resonac Group will comply with laws, regulations, rules and provisions of tax treaties that are applicable in each country and region where we conduct our business activities, and will fulfill our taxpaying duty as required in each country, referring to the OECD’s model tax convention, transfer pricing guidelines and the like.

3. Internal system for compliance

The Resonac Group allocates appropriate human resources to its tax management sector to establish an internal system for accurately handling tax issues that occur in day-to-day operations. Through continuous training and the like, we will make an effort to maintain and improve tax compliance awareness and cope promptly and accurately with newly established or amended tax systems and regulations in each country and region where we conduct our business activities.

4. Tax governance

Governance in tax affairs for the Resonac Group is the responsibility of Chief Financial Officer (CFO).
Under CFO’s leadership, Resonac’s Tax Management Department will cooperate with accounting departments of Group companies. When any Group company faces, or likely to face, important tax issues, Tax Management Department will establish and maintain a network with Group companies, and make an effort to jointly address such tax issues.

5. Tax planning

The Resonac Group, within the scope of ordinary business activities, will make appropriate tax payment by utilizing preferential taxation systems and the like in each country, thereby aiming to raise its corporate value.
Our Group will not be involved in tax planning without relevant business activities, nor in tax avoidance using so-called tax havens.

6. Relationship with the tax authority

The Resonac Group will make an effort to provide accurate information quickly as required by the tax authority in each country and region where we conduct our business activities.

7. Appropriate response to transfer pricing taxation

The Resonac Group will make an effort to determine transfer prices to ensure allocation of the amount of money equivalent to the profit to be allocated to each party to foreign controlled transactions, based on the arm’s length principle and in the light of each party’s functions performed, risks assumed, assets owned and level of the contribution to the profit. By application of advance pricing agreements and the like, we will make an effort to build a consensus with the tax authorities to reduce tax risks.

8. Scope of application of the tax code of conduct

This tax code of conduct shall apply to the transactions conducted by all constituent entities of the Resonac Group.

9. Nature of the tax code of conduct

This code of conduct complements the Resonac Group's corporate philosophy and code of conduct, and is a declaration of our firm promise with our stakeholders.