Tax Policy
Asahi Kasei Group Tax Policy
The Asahi Kasei Group endeavors to thoroughly comply with the laws and regulations of each country, and to prepare and appropriately apply internal company rules, based on the Asahi Kasei Group Code of Conduct.
In terms of tax, the Asahi Kasei Group also complies with the tax laws of each country in which it operates and makes appropriate tax payments in accordance with the laws by performing tax treatment based on internal company rules.
In addition, in order to maximize free cash flow, the Asahi Kasei Group makes its best effort to minimize tax risks, implement appropriate tax planning strategies, and make use of any available tax incentives. As a result, the Asahi Kasei Group aims at the maximization of corporate value.
1．Tax Compliance
The Asahi Kasei Group complies with the tax laws and regulations of each country in which it operates, as well as taxes guidelines published by the OECD. In addition, the Asahi Kasei Group ensures that each group company files tax returns and pays taxes within the due dates stipulated in each country.
2．Tax Governance
In the Asahi Kasei Group Code of Conduct that is obligatory for all officers and employees, the Asahi Kasei Group establishes that each group company understands the tax laws and performs proper and lawful tax treatment based on such laws, regulations, and internal company rules. Moreover, based on the Asahi Kasei Group Accounting Regulations, each group company is required to develop practical management of tax governance and appropriately report on their tax situation.
3．Managing Tax Risk
The Asahi Kasei Group performs tax treatment based on the tax laws, regulations, and internal company rules. However, the Asahi Kasei Group realizes that, in some cases, a difference of opinion with a tax authority may arise. If this is the case, the Asahi Kasei Group endeavors to mitigate tax risks by seeking the advice of qualified external tax advisors such as tax accountants' corporation and consulting with the tax authorities in advance as appropriate.
4．Tax Planning
The Asahi Kasei Group realizes that it is important to undertake effective tax planning for commercial purposes. We implement tax planning conducive to cash flow in accordance with the legislative intent underlying the tax laws and regulations, and does not engage in tax avoidance that lacks economic rationality, such as transferring profits to tax havens. In case that any income is subject to CFC rules in accordance with the tax laws and regulations of each country as a result of carrying out plans for commercial purposes, we file a tax return and pays tax appropriately.
5．Transfer Pricing
The Asahi Kasei Group realizes that prices in executing international related party transactions are easily arbitrarily determined and it likely results in a tax risk in each country. In accordance with the transfer pricing taxation of each country, we establishes prices for international transactions that are in accordance with the arm's length principle and prepares transfer pricing documentation.
6．Tax Incentives
In each country in which the Asahi Kasei Group operates, various kinds of tax incentives have been introduced based on government policy. We continually study the applicable laws and proactively make use of any available tax incentives to the extent that they fall within the scope of commercial purposes.
7．Relationship with Tax Authorities
The Asahi Kasei Group endeavors to build and sustain mutually respectful relationships with the tax authorities by responding to inquiries in good faith. We endeavor to address items suggested in tax audits appropriately.
Income Taxes
| Fiscal 2024 | Japan | Overseas2 | Total |
|---|---|---|---|
| Income taxes paid1 | - ¥3.4 billion | ¥48.9 billion | ¥45.5 billion |
- 1Based on the consolidated statements of cash flows of Asahi Kasei Corp. for the fiscal year ended March 2025
- 2Including corporate taxes paid by Japanese subsidiaries under certain overseas subsidiaries