With the release of a policy by the Organisation for Economic Co-operation and Development (OECD) to combat base erosion and profit shifting (BEPS), the complexity of taxation rules worldwide is steadily increasing. Due also to the growing importance of corporate governance related to taxation in Japan, Toray Group recognizes the necessity of highly transparent tax practices and corporate social responsibility. Therefore, the Group has enhanced its tax compliance efforts based on the CSR Guidelines.
To ensure that this initiative can be taken to an even higher level, the Group has once again clarified the basic taxation compliance approach that each employee should take, and established the Toray Group Tax Policy, which was approved by the Board of Directors in April 2020.
Under the responsibility of the general manager of the Finance and Controller’s Division¹, Toray Group will continue striving to improve its tax compliance while building its tax governance structure, centered on the Tax Department, to enhance corporate value.

1. 1 As of July 2025, a corporate vice president (member of the board) serves as the general manager of the Finance and Controller’s Division.

1. Tax Governance

The Toray Group Tax Policy outlines the basic tax governance principles, while internal regulations such as the Toray Group Tax Management Regulations require each group company to establish appropriate tax governance frameworks and properly report on their tax status.

2. Tax Risk Management

While striving to ensure compliance with the tax laws of each country in which it operates, Toray Group acknowledges the potential for its legal interpretations to differ from those of local tax authorities. In such cases, the Group engages external experts such as tax advisory firms to conduct thorough reviews, and, when necessary, make pro-active inquiries to the relevant tax authorities in an effort to minimize tax-related risks.

3. Transfer Pricing

Pricing for transactions with foreign related parties is determined based on the arm’s length principle in accordance with the OECD Transfer Pricing Guidelines, with the aim of ensuring appropriate income allocation. Toray Group does not engage in arbitrary manipulation of transaction prices for the sole purpose of tax avoidance, such as excessive profit shifting to low-tax jurisdictions. Transfer pricing documentation is prepared in compliance with the tax laws and regulations of the countries and regions in which the Group operates, as well as with applicable international frameworks.
In cases where double taxation arises on the same economic income in multiple countries or regions, the Group makes efforts to eliminate such double taxation by applying relevant tax treaties or mutual agreement procedures.

4. Tax Planning

Toray Group does not engage in excessive tax planning aimed solely at tax reduction, such as arbitrary tax avoidance schemes using tax havens or the deliberate interposition of entities with no economic substance that are unrelated to the purpose of business activities.

5. Helpline Use

Unethical or unlawful conduct, or concerns related to tax matters, may be reported through an internal whistleblowing system, the Corporate Ethics and Legal Compliance Helpline, which is available to group employees worldwide.