Our Stance on Tax Matters

The Foster Group works to maintain and improve tax compliance and perform proper filing and payment of taxes in accordance with the local tax-related laws and international rules based on its business and sustainable development strategies.
The Group does not make use of differences in tax-related laws between countries and regions to enjoy low tax rates without legitimate business purposes.

The Foster Group has established the global tax department within the Finance and Accounting Department of the Global Corporate Support Division at headquarters, so as to manage and monitor tax risks. Critical issues are reported to the top management including Board of Directors for their directions.

The Foster Group determines prices based on the arm’s length principle.

The Foster Group provides information and otherwise responds to tax authorities in good faith. In addition, the Group has received a bilateral advance pricing arrangement (BAPA) to ensure the predictability of the application of transfer pricing taxation.

The Foster Group prepares and discloses its financial statements in compliance with the Financial Instruments and Exchange Act and related laws. It also discloses tax information in the financial statements based on the related laws and regulations.
The Group responds appropriately to income taxes concerning the global minimum corporate tax rate, which was established based on Pillar Two of the BEPS 2.0 project which has been discussed by the OECD and the G20. For example, the Group examines whether it fulfills exemption criteria based on Country-by-Country Reporting (CbCR).