1. Basic Approach
The Tokio Marine Group (the “Group”) is committed to the continuous enhancement of its corporate value, with customer trust at the base of all its activities.
Not only does the Group assiduously comply with all local tax laws and regulations in the countries where there are operations, there is also a strong commitment to respect the traditions, cultures and practices in these countries. Business is conducted in a fair and equitable way conforming with social norms.
The tax policy follows this commitment and the Group seeks to maintain a robust tax management framework, whilst achieving appropriate tax payments through understanding and applying tax rules.
This approach is intended to further enhance corporate value.
2. Maintaining a Robust Tax Management Framework
In accordance with “Tokio Marine Group Basic Policies for Accounting”, the Group ensures timely and appropriate tax compliance, including return submissions. The Group also adheres to the relevant tax rules, such as OECD transfer pricing guidelines.
Tokio Marine Holdings strives to maintain a robust tax management framework utilizing effective cooperation throughout the Group.
3. Achieving Appropriate Tax Payments
The Group comprehensively manages all business endeavors, including any relevant tax considerations. The Group ensures that where appropriate the Group applies tax incentives, exemptions and allowances, optimizing its tax position.
All tax planning initiatives follow the substance and purpose of our business activities. The Group does not engage in tax planning such as using tax-free or low tax jurisdictions (known as tax havens) solely to reduce tax, without a suitable commercial rationale or in a way contrary to the purpose of relevant tax laws and regulations.
4．Approach to Tax Risk
The Group is cautious to review potential significant tax risks before making business decisions. The Group carries out necessary due diligence and consults with external experts and tax authorities as required.
The Group proactively manages transfer pricing and ensures that inter-company transactions are conducted based on the arm’s length principle, in accordance with OECD transfer pricing guidelines and applicable local tax rules. The Group complies with all necessary transfer pricing documentation requirements.
5．Relationship with Tax Authorities
The Group is transparent in its dealings with tax authorities and proactively manages the relationship with these authorities, based on open communication and presentation of the relevant facts as appropriate.