SUMCO Group Taxation Policies
Basic Approach
Based on the SUMCO Group mission to be the world’s No. 1 silicon wafer supplier by exceeding the expectation of our customers and stockholders, by recognizing the value of our employees and being good neighbors in communities, SUMCO Group shall conduct its business activities faithfully in accordance with law and ethics, and shall fulfill its responsibility to society.
SUMCO Group understands that the proper payment of taxes in accordance with the relevant laws and regulations of each country contributes to economic growth and development of society in each country, and helps toward living up to the support and trust of all stakeholders.
SUMCO Group shall endeavor, in ways like the following, to achieve timely compliance with revisions to the taxation system in each country and with trends in international tax frameworks, and to establish a tax compliance framework that is suitable at all times.
Observance of Tax Laws
SUMCO Group shall always observe tax-related laws and regulations in each of the countries and regions where it does business and fulfill its tax obligations in all countries and regions.
Engagement in International Tax Frameworks
SUMCO Group understands that the OECD BEPS (Base Erosion and Profit Shifting) project and other international initiatives are important undertakings for achieving tax transparency and preventing international tax avoidance.
Along with observing the tax laws in each country, SUMCO Group shall therefore conduct its tax affairs in accordance with the intent of international initiatives, endeavoring to ensure tax transparency.
In transactions with related parties in other countries and regions, SUMCO Group shall consider Arm's Length Price (ALP), and based on analysis of the functions, assets, and risks both between countries and between subsidiaries, distribute earnings appropriately according to their contribution.
Thinking on Tax Planning
SUMCO Group understands that transactions without a legitimate business purpose or economic rationality are an impediment to achieving tax transparency, and have the potential to harm the Group business value and the interests of stakeholders including local communities.
SUMCO Group shall not conduct tax planning aimed at tax avoidance, such as the use of structures without commercial substance, the transfer of value created to low tax jurisdictions, or the use of tax havens.
Provision of an Internal Framework for Tax Compliance
SUMCO Group, understanding the importance of instilling and reinforcing awareness of tax compliance in management and employees for the proper functioning of the tax compliance framework, shall seek to raise such awareness through education, information sharing, and consultations on proper handling of tax affairs.
Moreover, seeing tax-related risk as a material risk for business administration, SUMCO Group shall identify and analyze tax-related risk based on the risk management structure, and senior management shall perform regular annual checks of the status in dealing with issues for risk mitigation.
Establishment of Appropriate Relations with Tax Authorities
SUMCO Group shall comply with the tax administration procedures and tax collection procedures of each country. It shall maintain normal, sound relations with tax authorities and shall not provide improper benefits.
- Reference: SUMCO Group Income Taxes by Country
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- Income Taxes Paid
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2020 2021 2022 Income Taxes Paid
(Billions of Yen)Number of Employee Income Taxes Paid
(Billions of Yen)Number of Employee Income Taxes Paid
(Billions of Yen)Number of Employee Japan 5.4 5,885 4.6 6,095 7.0 6,710 Taiwan 0.4 1,364 1.1 1,427 1.4 1,523 US and others 0.2 950 0.2 947 0.4 956 Total 5.9 8,199 5.9 8,469 8.8 9,189