본문바로가기

Governance

Ethical Management

Tax Management

SK Chemicals fulfills its social responsibility and obligations in the tax sector, establishing and complying with tax strategies to manage tax-related risks.

  1. 1 SK Chemicals operates local subsidiaries or branches in the United States, Germany, China, Japan, and Malaysia. The company diligently fulfills tax reporting and payment obligations not only under domestic regulations but also in accordance with the regulations of each country where it conducts business. SK Chemicals faithfully complies with the duties of taxpayers, including the submission of required documents, maintaining transparent relationships with tax authorities in each country.
  2. 2 SK Chemicals evaluates and manages tax risks that may arise during business activities, such as enhancing the competitiveness of existing businesses and investing in new growth, ensuring compliance with domestic and international regulations. In the process of assessing and managing significant and complex tax issues, the company makes final decisions based on advice from domestic and international tax experts, queries and responses from tax authorities, or authoritative interpretations.
  3. 3 SK Chemicals follows the OECD Transfer Pricing Guidelines and adheres to the arm's length principle for transactions with related parties. For international transactions with related parties, the company manages compliance by preparing BEPS* reports and transfer pricing reports with the assistance of external tax experts.
    * BEPS: Base Erosion and Profit Shifting. Refers to profit shifting through income transfers. It involves multinational companies creating paper companies in countries with favorable tax rates through tax treaty advantages to avoid taxes.
  4. 4 SK Chemicals does not engage in transactions or contracts that transfer income between countries to exploit differences in tax laws or international tax systems. The company ensures that the value created in each country where it operates is consistently distributed as taxable income. SK Chemicals faithfully fulfills its international trade tax obligations through a normal tax structure without unfairly reducing tax burdens and without using tax havens.
  5. 5 The company's tax personnel faithfully comply with tax reporting and payment obligations in accordance with relevant regulations. They perform their duties based on the principle of maintaining transparent relationships with tax authorities.

The above tax policy is confirmed after the ESG Committee report.