Kyowa Kirin Group Tax Policy

Established on September 1, 2021

The Kyowa Kirin Group (hereinafter, the “Group”) strives to carry out corporate activities in a manner trusted by society, based on our philosophy, vision and core values.

With regards to tax operations, the Group strives to maintain and improve our tax compliance, and tax risk management, through enhancing our global tax governance systems.

The Group has established this tax policy and it is applicable to our entire Group. It will ensure tax transparency and appropriate tax payments.

1. Global Tax Governance

The Executive Officer in charge of the Finance Department is the person ultimately responsible for the Group’s tax governance and tax risk management. The Director of the Finance Department shall supervise the execution of the Group’s tax governance and tax risk management activities. In addition, the Director of the Finance Department shall report on the progress of these activities to the Executive Officer in charge of the Finance Department and report matters of significance to the Board of Directors via the Executive Officer in charge of the Finance Department.

The Group shall endeavor to enhance the Group’s corporate value sustainably through establishing this tax policy by resolution at the Board of Directors, by building and maintaining an effective global tax governance structure aligned with our “One Kyowa Kirin” business management structure, and by providing the global oversight of tax initiatives.

2. Tax Planning

The Group shall conduct reasonable tax planning where it is aligned with our business objectives and strategies. Since the Group’s corporate value may be undermined in the event that full consideration from multiple tax viewpoints is not given to any global business plan, the group shall consult with external advisors and ensure that sufficient research and consideration is undertaken in respect of our activities. The Group shall only carry out tax planning activities compliant with the relevant tax laws and regulations in the jurisdictions in which we operate.

The Group shall not conduct excessive tax planning that is deemed to be an act of tax avoidance in light of socially accepted practices, or an act of tax avoidance that is without business substance including use of tax havens.

3. Tax Transparency

The Group shall comply with both the tax laws and regulations of each relevant jurisdiction and the OECD Transfer Pricing Guidelines. The Group shall strive to ensure tax transparency by disclosing appropriate tax information in a timely manner.

4. Tax Compliance

The Group shall keep up-to-date with developments in the tax laws and regulations in each relevant jurisdiction and shall make appropriate tax payments in compliance with them.

5. Transfer Pricing

The Group shall comply with the OECD Transfer Pricing Guidelines and set transfer prices for intercompany transactions in accordance with the arm’s length principle. We shall analyze the functions, assets and risks of each Group company in light of the substance of their business activities, and periodically evaluate whether the profit allocation is appropriate in line with the contribution. The Group shall pay appropriate amounts of tax in each jurisdiction based on the value created by our business activities.

The Group shall prepare transfer pricing documentation in accordance with the relevant transfer pricing regulations in each jurisdiction.

6. Tax Incentives

The Group shall endeavor to improve tax efficiency and enhance our corporate value by appropriately utilizing applicable tax incentives, available in each relevant jurisdiction, based on a proper understanding of the intent behind them.

7. Attitudes toward Tax Risk

In the event that the Group is in an uncertain tax position, such as a transaction having multiple possible tax treatments or differences in opinion with the tax authorities of any jurisdictions concerning a tax treatment that the Group has judged appropriate, the Group shall make investigations into such matters by consulting with external advisors and considering the outputs. Also, in order to ensure certainty, the Group strives to reduce the tax risks associated with uncertainty by proactively seeking rulings by tax authorities where they are available.

8. Relations with tax authorities

The Group shall endeavor to establish cooperative relationships with tax authorities by providing appropriate information in a timely manner and by engaging in constructive discussions, in response to inquiries by the tax authorities.

9. Prevention and elimination of double taxation

The Group shall strive to prevent double taxation levied by multiple jurisdictions on the same economic benefits through conducting tax operations in accordance with this policy. If double taxation occurs, the Group shall strive to eliminate it by taking advantage of tax treaties or mutual agreement procedures available in the relevant jurisdictions.