In order to achieve its management philosophy, the Group^*1 complies with domestic and foreign laws and regulations, social norms, and ensures fair business practices. We also comply with domestic and foreign tax laws and regulations as well as the spirit of the law, and do our utmost to file tax returns and pay taxes in a legitimate and appropriate manner. Further, we will implement highly transparent tax accounting and use tax planning and tax breaks appropriately, thereby contributing to the development of local communities and the improvement of corporate value.

1.  Tax Compliance
In accordance with the spirit of the law, the Group will comply with the tax laws of each country or region in which it engages in business operations as well as international taxation rules, and work within the guidelines of the Organization for Economic Cooperation and Development (OECD) and others in order to file tax returns and pay taxes in an appropriate manner.

 

2.  Tax Governance
The Group will respond in a timely manner to the taxation systems and administrative operations of each country, endeavor to develop an appropriate system and environment that enable early detection of and response to taxation risks and address them, and implement risk management for improved corporate value. We will also provide ongoing education for those in charge of tax matters at each company to improve their tax knowledge.

 

3.  Tax Planning
The Group will not engage in profit-transfer acts, such as tax avoidance using tax-free or low-tax countries or regions (so-called tax havens), or transactions or tax planning without business purpose or substance. If any anti-tax haven taxation is applicable in light of the tax systems of each country or region, we will file tax returns and pay taxes appropriately.

 

4.  Tax Risk Management
The Group aims to minimize tax risks by correctly understanding the tax systems of each country and region. In the event that a transaction occurs where the interpretation of tax matters is unclear, we will carefully examine the validity of the relevant tax accounting and seek advice from outside experts as necessary to reduce uncertainty.

 

5.  Transfer Pricing
In compliance with international rules such as the OECD Transfer Pricing Guidelines, the Group will strive to allocate profits appropriately in accordance with their functions and contributions of the respective countries/companies, while being mindful of arm’s length pricing with respect to transactions with foreign related parties. We also endeavor to maintain appropriate transfer pricing documentation in line with the transfer pricing taxation of each country.

 

6.  Relationship with the Tax Authorities
The Group will endeavor to build and maintain good relationships with tax authorities by fully cooperating with them. Should a disagreement with the tax authorities arise, we will endeavor to resolve it through constructive communication.

 

7.  Transparency
The Group will endeavor to ensure transparency in tax matters by disclosing tax-related information in a timely and appropriate manner in accordance with the laws and regulations.

Taxes Paid by Country *²

In millions of yen

 

^*1 The ”Group” collectively refers to Daiwabo Holdings Co., Ltd. and its consolidated subsidiaries.

^*2 Based on the “'Country-by-Country Report” filed with the Japanese tax authorities, which have no direct relation to the consolidated financial statements.

^*3 The policy was approved at the meeting of the Board of Directors Daiwabo Holdings Co., Ltd. held on July 24, 2025.

^*4 The policy will be reviewed as necessary, in the event of a significant change in the tax environment, to ensure that tax accounting is appropriate at that time.

 

Date of enactment: July 24, 2025