Global Tax Policy

Shiseido Group complies with the laws and regulations in all countries in which we run business. THE SHISEIDO PHILOSOPHY, “OUR MISSION, DNA and PRINCIPLES” and Shiseido Code of Conduct and Ethics sets forth the code of conduct for all employees to ensure our compliance to the law. In addition, we set the global tax policy here to ensure the tax transparency. We aim to maximize the shareholder value by mitigating the tax risk globally.

We fully comply with the international guideline established by the OECD and the tax laws and regulations in all countries in which we run business. Furthermore, we also understand and respect the underlying intentions of the laws and regulations. We will not engage in abusive tax evasion through tax structure without commercial substance or shift profit to countries with low tax rates.

The discipline for the compliance and accurate tax accounting is set forth in Shiseido Code of Conduct and Ethics and shared with all employees to ensure tax transparency. We will resolve the tax issues by managing the tax risk locally by each RHQ and sharing the tax information globally in a timely manner.

Tax compliance is under the responsibility of the CFO. To manage the global tax risk effectively, tax team of global headquarters manages the tax compliance of the group, and CFOs at each regional headquarters manage the tax compliance in their region. Employees with tax expertise are assigned as necessary for the smooth operation of our global tax risk management organization. We provide trainings to employees to raise awareness on the tax compliance.

In order to improve the shareholder value, we strengthen the governance and save tax by utilizing tax incentives where applicable in the ordinary course of business.

Our transfer pricing policy is in accordance with the OECD Transfer Pricing Guidelines and the laws and regulations of each country in which we run business. The pricing for the intercompany transaction is determined under the arm’s length principle and based on the policy.

We do not utilize the tax havens to solely avoid tax.

We cooperate with the tax authorities and build a good relationship with them.