The Denka Group has established the Denka Group Ethical Regulations as the foundation of its compliance system to ensure thorough compliance with laws and regulations through the establishment of internal rules and their appropriate implementation. Furthermore, we are striving to foster a high level of ethical awareness through training and education for officers and employees.
In terms of taxation, our basic policy is to comply with the tax laws and regulations of each country and region where the Denka Group conducts business as well as to correctly understand the intent of these laws and regulations and fulfill our tax obligations appropriately. Based on this policy, we have established the Denka Group Basic Policy on Taxation.
We practice transparent tax procedures, appropriately manage tax risks, and contribute to the development of local communities and the sustainable enhancement of corporate value through sound tax planning and the appropriate use of preferential tax systems.

Denka Group Basic Policy on Taxation

The Denka Group recognizes that paying taxes is one of the basic and important social responsibilities that companies should fulfill. Accordingly, we conduct appropriate tax payment under the following policies and strive to contribute to the development of the economy and society.

Legal Compliance

The Denka Group complies with the tax-related laws and regulations of each country and region and conducts appropriate tax reporting and payment.

Tax governance system

The Denka Group has established a system for conducting tax practices in accordance with this Basic Policy and other internal regulations under the Executive Officer in charge of the Accounting Department appointed by the Board of Directors of Denka Company Limited. The Accounting Department of Denka Company Limited addresses various tax issues in cooperation with Group companies, and reports to the Executive Officer in charge of the Accounting Department on important matters, and submits matters to the Board of Directors or reports to the Board of Directors in accordance with internal standards.

Appropriate tax cost

The Denka Group respects the intent of tax-related laws and regulations in each country and region while conducting appropriate tax planning aimed at increasing corporate value. We do not engage in tax planning that is not in line with our business activities, including the use of tax havens for the purpose of tax avoidance.
Furthermore, we promote the use of preferential tax systems within the scope of normal business activities, and strive to eliminate double taxation on the same economic benefit.

Management of tax risks

The Denka Group conducts sufficient examination by incorporating the expertise of external specialists for cases where tax treatment is unclear, and makes prior inquiries to tax authorities as necessary to reduce risks.
In transactions with foreign related parties, the Denka Group applies appropriate transaction prices based on the arm's length principle and prepares transfer pricing documentation in accordance with the systems of each country and region.

Relationship with tax authorities

The Denka Group sincerely responds to requests from tax authorities of each country and region, and strives to build and maintain sound and good relationships with such tax authorities.

Established on August 7, 2025
DENKA COMPANY LIMITED