Tax Affairs

artience group (hereinafter referred to as the "Our Group") complies with the tax-related laws and regulations of the countries and regions in which it conducts business activities, fulfills its corporate social responsibility by paying appropriate taxes, and contributes to the development of local communities. Contributing to improving sustainability.
Our group has established the following policy to ensure tax transparency and improve tax compliance.

1. tax compliance
   Our group complies with the tax-related laws and regulations and tax treaties of the countries and regions in which we operate, understands the purpose and background of the legislation, and conducts tax filing and payment in an appropriate and timely manner. In addition, we will provide appropriate education and training for our group's executives and employees to ensure that tax compliance is permeated and established within the company.
2. tax planning
   Our group considers and implements plans to improve cash flow by utilizing effective tax incentives (tax benefits) to achieve our business objectives. However, we will not apply excessive tax avoidance practices such as applying preferential tax treatment based on interpretations that deviate from the legislative purpose of laws and regulations, or transferring profits to low-tax countries (tax havens).
3. tax governance
   Our group, with the director in charge of finance as the chief executive officer, works with artience Co., Ltd. 's Finance & Accounting Department to work with the finance departments of domestic and overseas Group Companies, and strives to create a system and environment that facilitates communication regarding tax matters with the relevant departments of each company.
4. Tax risk reduction
   The Group responds appropriately to tax changes in the countries or regions in which it operates, and for transactions where the tax interpretation is unclear, the Group receives advice from experts and, in some cases, inquires with the tax authorities in advance. We strive to reduce tax risks by solving problems in a rational and transparent manner.
5. Complying with transfer pricing taxation system
   In transactions with foreign related parties, the Group will allocate profits appropriately in accordance with the functions, assets, and risks of each Group Companies based on arm's length prices in accordance with the OECD Transfer Pricing Guidelines, and We will strive to maintain transfer pricing documents in accordance with tax-related laws and regulations.
6. Relationship with tax authorities
   Our group responds in good faith to the requests of the tax authorities of the countries and regions in which we operate, and strives to build and maintain healthy and good relationships of trust. Regarding matters pointed out in tax audits, etc., we will clarify the causes, take appropriate corrective and improvement measures, and work to prevent recurrence.

Established on January 1, 2024 (Resolved at Board of Directors on December 8, 2023)