Tax Compliance | Compliance | Governance | Sustainability | IHI Corporation

Approach

As new rules regarding international taxation are being introduced, there is an increasing need for companies to ensure transparency and accountability regarding their tax affairs to stakeholders including authorities, investors, and society.
In April 2019, the IHI Group established the IHI Group Global Tax Policy as a fundamental policy in response to the demand for more sophisticated tax governance.

Policy

IHI Group Global Tax Policy

The IHI Group enacts the Global Tax Policy in accordance with “Basic Code of Conduct for the IHI Group,” for the purpose of developing global tax compliance, and aims at growing sustainably and enhancing corporate value over the future.

Respect for the rule of law
The IHI Group observes the laws and ordinances on taxes of each country or region based on a clear understanding of their meaning. The IHI Group also acts sincerely and fairly with high ethical standards so that it does not violate social rules or international norms.
Transfer pricing
The IHI Group, by assessing transfer pricing in accordance with the laws and ordinances of each country or region and the International Transfer Pricing Guidelines, is committed to appropriately allocating income commensurate with the contribution of each Group company and to making proper tax payment in each country and region.
Tax planning
The IHI Group does not engage in tax planning for the purpose of tax avoidance.
Relationship with the tax authorities
The IHI Group, by providing information in the course of tax administration procedures and tax audits appropriately and in a timely manner, strives to maintain a sound relationship with the tax authorities of each country or region.

Governance

The IHI Group strives to implement appropriate tax governance for the entire Group under the jurisdiction of the Director in charge of Group Finance & Accounting Division.

Initiatives

Education/Awareness Building

The IHI Group has translated its IHI Group Global Tax Policy into multiple languages, which it distributes to affiliated companies in Japan and overseas in order to educate while disseminating it throughout the Group.

Tax Stakeholder Engagement & Management

The IHI Group makes timely and appropriate tax declarations and disclosures, by observing the tax laws and ordinances in each country or region, striving to maintain a sound relationship with the tax authorities. In addition, in order to promote efforts to improve tax governance, we report the results of our own tax investigations at the Management Committee and undertake measures to prevent recurrence through upper management.
Based on these efforts, the IHI Group ensures its tax compliance and appropriately manages any tax costs and risks.

Country-by-Country Report (CbCR) Disclosure

The IHI Group pays appropriate taxes in each country or region in which it operates, in accordance with the objectives of the BEPS project of the Organization for Economic Cooperation and Development (OECD).

FY2023 (Fiscal Year Ended March 31, 2024) Country-by-Country Report (CbCR)

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