Tax Policy

Tax Policy

Tax Policy

Background and Purposes

The OMRON Group has “OMRON Group Sustainable Conduct Policies and OMRON Group Rules for Ethical Conduct,” which states that we at OMRON must endeavor to strictly comply with tax laws, and appropriately pay our tax obligations (including direct taxes such as corporate taxes and income taxes, indirect taxes such as added-value taxes and customs, as well as every taxation in each country/region), in order to contribute to enhancing the social trust of the OMRON Group and its corporate value, and facilitating smoother corporate management and business practice.
In order to comply with the rules, the OMRON Group sets and acts on tax policy as follows.

Tax Policy

  1. Basic Policy

    All employees of OMRON Group, based on our corporate philosophy, realize fair and transparent management in all corporate activities as well as actively tackle issues facing stakeholders.
    Regarding tax issues, we give the highest priority to complying with laws and regulations related to taxation. We contribute to society through appropriate tax payment and maximize shareholder value. We strive to grasp trends in laws and regulations of each country and ensure legal compliance at all times.

  2. Appropriate tax payment

    OMRON Group places the highest priority on legal compliance and, within the scope of ordinary business activities, seeks to make appropriate tax payment by utilizing a preferential taxation system in each country. Please note that we don't apply the preferential taxation systems by stretching the meaning of legislation such as laws and regulations, and that we don't perform the tax evasion act that does not conform to the business purpose or the abuse tax planning using a country with less tax burden.

  3. Approach to transfer pricing taxation

    With regard to the OMRON Group's international transactions, based on the arm's length price in accordance with the OECD transfer pricing guidelines, we carry out appropriate profit distribution according to the business risks borne by each relevant company and the functions and assets held, and prepare transfer pricing documents in accordance with the laws and regulations of each country.
    In addition, we are working to make appropriate tax payments by utilizing Advance Pricing Agreement with the tax authority.

  4. Approach to anti-tax haven rules

    We at the OMRON Group will not use tax havens for the purpose of intentional tax avoidance. When necessary in our business operations to invest in a low-tax county, or when a country's tax rate is reduced due to the amendment of laws and regulations of the country, we make a judgment whether anti-tax haven rules is applied or not according to the laws and regulations.
    As a result, if anti-tax haven rules are applied, we appropriately file tax returns and make tax payments.

  5. Tax compliance activities

    The OMRON Group conducts regular internal training for its employees, in order to establish awareness of tax compliance within the company. If any tax issues are identified, we aim to take improvement measures promptly.

  6. Relationship with Tax Authorities

    OMRON Group, in accordance with each country's requests by tax authority, aims to maintain healthy relationships with tax authorities by providing appropriate information and responding sincerely to tax authorities.
    In addition, in the event that a difference of opinion should arise with each country's tax authority, we will communicate constructively with the tax authority to seek a resolution to the issue.

*The Policy has been approved by the Board of Directors at OMRON Corporation.

Country-by-Country Reporting

Please refer to Excel sheets for the OMRON Group's FY2022 CbCR, including names of resident entities, primary activities, number of employees, revenue, profit (loss) before tax, income tax accrued, and income tax paid.

OMRON Corporation, OMRON Corporation, OMRON Corporation, OMRON Corporation, OMRON Corporation, OMRON Corporation, OMRON Corporation, OMRON Corporation, OMRON Corporation, OMRON Corporation, OMRON Corporation, OMRON Corporation, OMRON EXPERTLINK Co.,Ltd., OMRON Corporation, OMRON Corporation, OMRON Corporation, OMRON Corporation, OMRON Corporation, OMRON EXPERTLINK Co.,Ltd., OMRON Automotive Electronics Co. Ltd., OMRON SOCIAL SOLUTIONS Co.,Ltd., OMRON SOCIAL SOLUTIONS Co.,Ltd.