Milbon Global Tax Policy

Milbon's Approach to Taxation

The Milbon Group (including Milbon Co., Ltd. and its consolidated subsidiaries, hereinafter collectively referred to as "our Group") strives to comply with laws and regulations worldwide and to file tax returns and pay taxes lawfully and appropriately. We consider fulfilling our tax obligations in all countries and regions where we operate not only a duty but also an important form of social contribution. Based on this philosophy, we will implement appropriate tax management and work to enhance corporate value.

Compliance

Our Group complies with the laws and regulations of all countries and regions where we conduct business activities, as well as international initiatives such as the OECD's BEPS Project and the principles of transfer pricing guidelines. We ensure lawful and appropriate tax payments based on the actual business conditions. Furthermore, in accordance with the "Milbon Ethics and Code of Conduct", we maintain transparency in tax matters.

Governance

The ultimate responsibility for tax governance within our group rests with the Director in charge of Finance at headquarters. The Finance Department at headquarters oversees tax matters for the entire group, coordinates with relevant departments and group companies, and strives to establish systems and environments to address tax-related issues.

Tax Planning

Our group does not engage in intentional tax avoidance without substantive business activities or abusive tax planning utilizing tax havens. We also strive to achieve an appropriate tax burden by utilizing preferential tax systems and the eliminating double taxation.

Transfer Pricing

Our group complies with the OECD Transfer Pricing Guidelines, sets intercompany transaction prices based on the arm's length principle, and strives for appropriate profit allocation among group companies and proper tax payment in each country.

Tax Risk Management

Our group conducts thorough research and analysis in tax matters involving uncertainty, seeks expert advice as necessary, and strives to reduce tax risks.

Relationship with Tax Authorities

Our group strives to build and maintain good relationships with tax authorities by responding to them in good faith.