SAKATA INX Group 
Tax Policy

SAKATA INX Group complies with domestic and foreign laws and regulations as a social responsibility. We always keep in mind of fair and honest corporate activities stipulated in our ethical code of conduct based on social norms and corporate ethics.
We believe that companies play an important role to build good relationships and earn trust from stakeholders, to contribute to the sustainable development of society, and also to pursue appropriate profits by fair competition.

1. Basic Policy

We maintain high ethical standard and social common sense in our corporate activities and comply with tax law and other relevant laws and regulations stipulated in each country and region. We hereby set and act upon this tax policy for appropriate tax payment to minimize the risk of tax lawsuit, penalty, etc.

2. Tax Governance

SAKATA INX Group complies with domestic and foreign laws and regulations and internal company rules including accounting regulations and others. We are to be transparent and ensure proper implementation.
In terms of tax, we comply with the tax laws and regulations of each country and region to enhance our corporate values by minimization of tax risks, payment of appropriate taxes and maximization of cash flow.
When there are various kinds of tax incentives that have been introduced based on the government policy, we will actively make use of available tax incentives conforming to our business activities.
Furthermore, we will also make use of tax reduction, tax exemption measures, other tax deduction system, accelerated depreciation and tax treaty in a particular country and region to conduct operations.

3. International Taxation

With regard to the SAKATA INX Group's international transactions, based on the arm's length price in accordance with the OECD (Organisation for Economic Co-operation and Development) transfer pricing guidelines, we carry out appropriate profit distribution according to the degree of contribution by each company.
If double taxation occurs whereby taxes are levied by multiple countries and regions on the same economic benefits, SAKATA INX Group will strive to eliminate double taxation by taking advantage of the tax treaties and mutual agreement procedures provided by the relevant countries.

4. Tax planning and Tax avoidance

SAKATA INX Group manages tax planning in a fair and appropriate manner commensurate with our business activities.
We seek to make appropriate tax payment by utilizing a preferential taxation system in each country and region within the scope of ordinary business activities.
On the other hand, we comply with international tax rules and the laws and regulations of each country and region in which we conduct business activities, and make an effort to minimize tax risks. We do not arrange tax avoidance through the utilization of tax havens and do not conduct tax planning in a manner not commensurate with our actual business conditions.

5. Relationship with Tax Authorities

SAKATA INX Group, in accordance with each country’s and region's requests by tax authority, aims to maintain healthy and good relationships with tax authorities by providing appropriate information and responding sincerely to tax authorities.
In the event that a dispute or difference of opinion should arise regarding to items suggested in the tax audit and others by the tax authority in each country and region, we will constructively communicate with the tax authorities to seek a resolution to the issue.

Enacted on August 1, 2022