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 each country's tax law and appropriately responding to tax authority.
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.

Tax Policy

1. Compliance with laws and regulations
   Nitori Group complies with the laws of each country, tax treaty, and international taxation rules, and carries out appropriate tax payment obligations.
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.
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.

(Tax Policy Effective date: July 26, 2017)