Tax Policy

Tax Policy

The Cosmo Energy Group Management Vision is, “In striving for harmony and symbiosis between our planet, man and society, the Cosmo Energy Group aims for sustainable growth towards a future of limitless possibilities.” As part of our efforts to realize this vision, we recognize that ensuring transparency in tax calculation and fulfilling tax obligations appropriately will not only contribute to social and environmental progress, but also support the Group’s sustainable development. Accordingly, the Cosmo Energy Group Code of Conduct mandates that we employ appropriate accounting procedures, including proper tax accounting, as we strive to maintain our position as an honest corporate group.

Based on our Management Vision and Code of Conduct, this tax policy outlines the Group’s basic approach to properly fulfilling its tax obligations and social responsibilities in all countries and regions where it conducts business.

1. Legal compliance

We comply with the laws and regulations of all countries and regions in which the Group operates, and conduct business activities in accordance with the OECD Transfer Pricing Guidelines.

2. Appropriate tax payment

We comply with the tax laws of all countries in which the Group operates, and pay tax lawfully and appropriately by conducting tax accounting based on internal rules. We do not engage in transactions merely as a means of avoiding tax, which runs counter to the purpose of tax law.

3. Compliance with the transfer pricing tax system

In cross-border transactions with our related parties, we set transfer pricing based on arm’s length prices in accordance with the OECD Transfer Pricing Guidelines. In addition, we prepare transfer pricing documents in accordance with the laws and regulations of the countries concerned, and respond appropriately to any tax authority requests.

4. Optimization of tax burden

We strive to optimize tax expenses to the extent permitted by the purpose and substance of the business, as well as the spirit of the law. We thereby strive to improve corporate value and maximize value for shareholders.

5. Governance system

We maintain a governance system to ensure Group operations are properly carried out based on this tax policy and internal rules.

6. Building trust with tax authorities

We strive to maintain sound relationships with tax authorities by always responding in good faith. This includes providing appropriate information whenever it is requested. Moreover, we take measures to prevent recurrence of any issues identified by tax authorities.

7. Communication and education

We actively share this policy with officers, employees, business partners and other stakeholders. We fully educate all of our officers and employees on this policy to ensure that it is properly integrated into the business activities of the entire Group, and we strive to maintain and improve awareness of tax compliance.

Established: February 10, 2022