TIS INTEC Group Tax Policy

The TIS INTEC Group has established the TIS INTEC Group Tax Policy based on Group’s basic philosophy OUR PHILOSOPHY in order to pay taxes appropriately in compliance with the laws and regulations of each country.

Basic Policy

The TIS INTEC Group carries out corporate activities as a good member of society based on OUR PHILOSOPHY, which represents the values of the TIS INTEC Group.

Based on the TIS INTEC Group’s thinking in which "the corporation is a public instrument," with stakeholders we define the corporation as "a social system that aims for both happiness that contributes to social expectations and people's happiness via value exchange," and define the enhancement of the quality and quantity of value exchanged with stakeholders as one of our growth objectives - "increased value-exchangeability”.

Applying this philosophy to our tax affairs, we believe that we have a responsibility as a company to maintain tax compliance and remit appropriate tax obligations in the interest of tax transparency for our various stakeholders.

Tax Governance

The Executive Officer of Finance & Accounting department is the person ultimately responsible for the tax matters for the TIS INTEC Group.

The TIS INTEC Group Tax Policy has been developed in order to establish and maintain a tax management structure in line with OUR PHILOSOPHY, the fundamental philosophy of the Group, and to ensure that the Executive Officer of Finance & Accounting department performs tax-related duties appropriately.

The Executive Officer of Finance & Accounting department shall oversee the status of tax management of the entire Group and report any significant issues to the board of directors.

In accordance with the TIS INTEC Group Tax Policy, the TIS will strive to establish a structure that ensures sufficient coordination across the Group, appropriately manage tax-related matters, and report the status of tax matters to the top management as necessary.

Tax Compliance

The TIS INTEC Group considers the basis upon which a corporation may conduct itself is, beyond anything else, the concept of being "Honest," or in other words, honesty and sincerity.

With regard to the tax practice, we will understand and comply with the legislative intent of the tax-relevant laws and regulations of the countries and regions in which we operate.

Proper Tax Payments

One of the TIS INTEC Group's basic policies in management is to "go beyond society," which ensures that we go further than social norms and social expectations. In addition, one of the guidelines for the behavior of the Group's members is “As a good member of society”.

With regard to the tax practice, we will strive to remit appropriate tax obligations by utilizing tax incentives aligned with our business activities and in accordance with the relevant tax regulations in each jurisdiction based on an understanding of the intent and background of such legislation.
The TIS INTEC Group shall not engage in acts which lack business substance, and which social conventions deem tax avoidance, such as excessive tax planning or tax evasion using tax havens.

Transfer Pricing

The TIS INTEC Group complies with the OECD transfer pricing guidelines and sets transfer prices of intercompany transactions based on the arm’s length principle.
The Group does not determine any transfer price with the purpose of shifting profit to low-taxed countries.

The TIS INTEC Group evaluates whether income allocation is appropriate and in line with respective contributions based on the analysis of each group company’s functions and risks, and also strives to remit appropriate amounts of tax in each operating jurisdiction based on the value created by business activities.

The TIS INTEC Group strives to prepare transfer pricing documentation in accordance with the relevant transfer pricing regulations in each jurisdiction and submit relevant documentation to tax authorities as necessary.

Relationship with Tax Authority

The TIS INTEC Group strives to have cooperative relationships with tax authorities by responding to inquiries from tax authorities in a prompt and courteous manner.

In the event that uncertain tax positions occur during business activities, the TIS INTEC Group strives to reduce relevant tax risks by proactively seeking advance rulings from tax authorities where they are available.

The TIS INTEC Group also takes measures to prevent the recurrence of matters highlighted by tax authorities.

Income tax by region [Fiscal 2023 (April 1, 2022 - March 31, 2023)]

(Millions of Yen)

[Notes]
Based on the consolidated financial statements for FY2022
*1 Including regional performance and consolidation adjustments in Japan