Global Tax Policy

Nitori Group Global Tax Policy

Nitori Holdings Co., Ltd. and its subsidiary (hereinafter referred to as “Nitori Group”) position sustainable growth and improvement in corporate value over the medium to long term as the most important management issue, In order to realize that, we believe that it is necessary to establish a mechanism to minimize tax risks and share tax best practices.

Taxes paid from the revenues earned from the economic activities of Nitori Group are returned to the regional economy and society broadly, and the growth source of the area where the Nitori Group develops locally. Therefore we believe that proper tax payment is a means of social contribution.

Nitori Group hereby establishes this basic policy and discloses it and declares that employees of Nitori Group companies understand this policy and comply.

Basic Policy

  1. Nitori Group will strive to minimize tax risks, improve corporate value and maximize shareholder value by adhering to the tax laws applicable in the countries and regions where it operates (hereinafter “each country”) and appropriately responding to tax authorities.
  2. Nitori Group will pay close attention to the trends in the international tax framework required as a global company and make timely responses to such changes.
  3. As an effort against tax compliance, Nitori Group strives to maintain and improve compliance through education and enlightenment for employees to comply with laws, social norms and internal regulations. In addition, in order to enhance tax compliance, it is important to cooperate with tax authorities. Management and other relevant personnel actively participate in tax-related corporate governance and continuously review internal rules and tax-related codes of conduct for employees.

Tax Policy

  1. Compliance with laws and regulations
    The Nitori Group complies with the laws and regulations of each country, relevant tax treaties, and international tax rules. We fulfill our tax obligations appropriately, taking into consideration the intent of the legislation, and contribute to the growth of the countries in which we operate.
  2. Transparency
    Nitori Group amid increasing interest in accounting information and tax policies for listed companies, we disclose information according to relevant laws and regulations, disclosure standards and accounting standards of each country, and stakeholders to various tax authorities, shareholders, local communities, etc. We will ensure the transparency regarding taxation.
  3. Minimize tax risk
    Nitori Group will respond to change of the tax system and tax administration of each country every moment; we aim to minimize tax issue by thorough examination.
  4. Tax strategy
    Nitori Group does not adopt a tax strategy that does not meet intentional tax avoidance, any business entities, or international taxation rules. In addition, if legal double taxation of the same company, or economic double taxation of the same economic benefit in multiple countries or regions occurs, we will strive to eliminate such double taxation in accordance with the relevant tax treaties or through mutual consultation between the countries involved.
  5. Transfer pricing
    Nitori Group realizes the proper allocation of international income according to the contribution of overseas corporations in each country and prevents income from overseas corporations of each country from being transferred to a corporation in another country.
    Also, by calculating transfer pricing based on OECD transfer pricing guidelines, we will endeavor to pay taxes properly in each country.
  6. Tax haven
    Nitori Group understands that using an excessive tax incentive system in a tax-free or low-tax country / region hinders proper tax payment in each country. According to that, we will not do intentional tax avoidance using tax havens.
  7. Relationship with Tax Authorities
    The Nitori Group strives to ensure transparency and reliability in tax matters by promptly providing information and responding in good faith to requests and tax audits from tax authorities in each country.
    In addition, if the Nitori Group's tax decisions differ from the views of tax authorities, and if the Group believes its decisions are reasonable in light of relevant laws, regulations, and the intent of the law, we will consider seeking rectification through appropriate legal procedures.
  8. Collaboration with Accounting Auditors and Supervisory Bodies
    Nitori Group ensures the appropriateness of accounting procedures and financial reporting related to taxation through audits by accounting auditors, supervision by the Audit & Supervisory Committee and corporate auditors, and collaboration with the heads of the accounting departments at each company.
  9. Tax Governance
    The Head of the Finance and Accounting Department is responsible for establishing and maintaining a governance system for tax compliance and risk management within the Nitori Group and reports the status of compliance with this policy to the Board of Directors.
    The Company’s Finance and Accounting Department, under the direction of its Head, coordinates with each company in the Nitori Group to ensure a tax governance system that complies with this policy. In addition, the Head of the Accounting Department of each company in the Nitori Group is responsible for ensuring compliance with this policy and with the laws and regulations of each country.
    The Nitori Group periodically reviews this policy to ensure that it always has a system in place to fulfill its social responsibilities regarding taxation.

Established on July 26, 2017

Revised on January 15, 2025