A transparent tax strategy is crucial for a company's sustainable growth.
At SK On, we strive to gain the trust of various stakeholders by formulating and managing a transparent tax strategy.
At SK On, we prioritize diligently fulfilling our tax obligations and managing tax-related risks. We view these actions as the foundation of our continued business stability and growth, the value we create for our stakeholders, our central role in social and economic advancement, and our contribution to human well-being.
Nations worldwide are revising and enacting tax laws to mandate the compilation and submission of country-by-country reports, as recommended by the OECD. This is an effort to curb international tax evasion via Base Erosion and Profit Shifting (BEPS). They are also intensifying taxation measures against tax evasion to bolster tax revenue in light of increasing public expenditures.
To comply with these regulations, we have engaged external professionals to perform a BEPS risk assessment and compile documentation across our global locations.
We recognize the potential risk of double taxation due to tax jurisdiction disputes related to transfer pricing transactions with our critical global business sites. To address this, we are employing bilateral tax treaties and the Advance Pricing Agreement (APA) system.
We have initiated the renewal of the Korea-China APA, agreed upon in 2013 for our subsidiary in China, and are in the process of applying for this renewal. Additionally, we plan to file for an APA concerning our Spanish operations with the Spanish tax authorities.