Our Basic Policy
ROHM Group always pursuits the best corporate governance with a vision of achieving the purposes and policies including “Company Mission” and “Basic Management Policy”, with the aim for sustainable corporate growth and maximizing the corporate value over the mid- to long-term. ROHM Group established “ROHM Group Business Conduct Guidelines” to serve as a code of ethics for all directors, officers and employees, and engages in the global business activities.
ROHM Group has established a management structure which appropriately understands the tax-related issues relating to its business activities and makes its tax payments in compliance with the relevant tax laws and regulations of each country/region. ROHM Group responds appropriately to any tax reforms in Japan and overseas, including the BEPS (“the Base Erosion and Profit Shifting”) Project published by the OECD (“the Organization of Economic Co-operation and Development”), and will continue to fulfill its CSR (“Corporate Social Responsibility”) on an even higher level.
ROHM Group Tax Policy
- (1) Tax Governance
- ROHM Group appointed the Director of Accounting & Finance Headquarters as the Chief Executive and implemented a structure under which the HQ Tax Division cooperates with the group companies and related divisions in order to supervise any tax-related issues. ROHM Group further seeks to secure and train human resources with significant tax knowledge and experience, with the aim of building a strong structure that is capable of handling increasingly complicated tax operations.
- (2) Tax Compliance
- ROHM Group engages in the filing of appropriate tax returns and payment of appropriate taxes by understanding the latest laws and tax regulations of each country/region. ROHM Group has also introduced level-specific trainings designed to enhance tax knowledge and to penetrate the awareness of tax compliance.
- (3) Tax Risk Management
- For the early identification and minimizing of any tax risks, the HQ Tax Division of ROHM Group gathers information on a timely basis through coordination with the group companies and related divisions. Upon identifying any tax risks, ROHM Group takes immediate actions to solve such risks and requests advice from external professionals as needed.
- (4) Tax Planning
- ROHM Group understands that actions for tax avoidance will damage the trust of its stakeholders and will lead to a decline in its corporate value. Therefore, ROHM Group does not perform any tax planning that deviates from the purpose of the law and does not use tax havens for the main purpose of tax avoidance. However, in order to maximize its cash flow, ROHM Group utilizes tax incentives and tax treaties as defined in the tax-related regulations of each country/region, and optimizes its tax payments.
- (5) Transfer Pricing
- ROHM Group seeks to conduct its internal transactions appropriately. In accordance with the Transfer Pricing Guidelines published by the OECD and enacted by each country/region, ROHM Group determines the arm’s length price by allocating profits to the overseas group companies based on their functions performed, risks assumed and assets owned.
- (6) Relations with the Tax Authorities
- ROHM Group endeavors to establish and maintain good relationships with the tax authorities in each country/region. Information requested by the tax authorities in each country/region will be provided in a timely-manner based on the relevant tax laws and regulations. In addition, ROHM Group strives to have constructive communications with the tax authorities during tax audits. With respect to any issues identified, ROHM Group will take measures to prevent the recurrence through coordination with the group companies and related divisions.