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Tax Policy

As a global beauty company, Amorepacific Group (the “Group”) is committed to full compliance with the tax laws and regulations of every jurisdiction in which it operates. We ensure that all tax reporting and payment obligations are met with integrity. Furthermore, the Group seeks to fulfill its responsibilities as a company trusted by its stakeholders through transparent tax management.

1. Purpose of the Tax Policy

This Tax Policy aims to:

  • Ensure compliance with applicable tax laws and the accurate and timely payment of taxes in each jurisdiction.
  • Manage tax risks in a systematic manner.
  • Enhance trust through transparent tax disclosures.
  • Establish responsible tax strategies aligned with ESG principles.

2. Scope of Application

This Policy applies to Amorepacific Holdings Corp., the holding company, as well as all domestic and overseas subsidiaries. It also applies to all directors, officers, and employees involved in tax-related decision-making and operations.

3. Tax Policy Guiding Principles

3-1. Tax Compliance and Fulfillment of Tax Obligations
  • The Group complies with applicable tax laws and regulations in every jurisdiction in which it operates. The Group prioritizes adherence to both accounting standards and tax laws at the headquarters and local levels.
  • The Group fulfills its corporate social responsibility through accurate tax calculations and the timely filing and payment of all tax liabilities.
  • The Group provides accurate data and documentation in a transparent and good-faith manner upon request by relevant tax authorities.
3-2. Compliance with Transfer Pricing Policy
  • The Group complies with the OECD Transfer Pricing Guidelines and the arm’s length principle.
  • The Group prohibits the artificial shifting of profits through the exploitation of tax rate disparities and does not permit transactions that lack commercial substance.
  • Where necessary, the Group may engage external experts to assess the appropriateness of its transfer pricing practices.
3-3. Prohibition of Tax Avoidance and Abuse of Tax Havens
  • The Group strictly prohibits tax avoidance activities through artificial structures involving tax havens.
  • The Group does not permit the transfer of income without commercial substance or the establishment of entities for the purpose of tax avoidance.
  • The Group ensures that taxable income is allocated in accordance with the economic substance of the jurisdictions in which it operates.
3-4. Establishment and Implementation of a Transparent Tax Strategy
  • Tax personnel maintain transparent and cooperative relationships with the tax authorities in each jurisdiction.
  • Tax-related information is disclosed transparently through audit reports and public disclosures.
  • Key tax information, including corporate income tax, deferred tax, and related expenses, is recorded in accordance with applicable accounting and tax standards and is disclosed to external stakeholders as required.
  • To enhance the transparency of tax information, the Group fully supports and cooperates with external audit procedures.

4. Tax Risk Management Framework

4-1. Risk Identification and Assessment
  • The Group continuously monitors changes in the tax environment in each jurisdiction, as well as developments in international tax standards.
  • The Group proactively identifies and assesses tax risks arising from its business activities and transaction structures.
4-2. Enhancement of the Internal Review System
  • The finance and tax functions conduct preliminary reviews of new, large-scale, and high-risk transactions to ensure compliance with applicable laws and regulations.
  • The Group strengthens its professional capabilities through the systematic professional development of its tax personnel. Key tax-related decisions are made transparently and prudently, incorporating the expertise of external advisors.
4-3. Ongoing Verification
  • The Group periodically reviews compliance with tax laws and, where necessary, mitigates tax risks through independent verification by external accounting and tax firms.

5. Implementation and Management of the Tax Policy

5-1. Regular Policy Review
  • This Policy is reviewed and updated periodically to reflect changes in the global tax environment, including OECD guidelines, the BEPS framework, and evolving tax regulations in the jurisdictions in which the Group operates.
5-2. Governance
  • The Group implements this Tax Policy in accordance with its ESG management principles. Significant tax-related matters are reviewed by executive management and the relevant committees.
  • Updated versions of this Policy are disclosed through appropriate internal and external channels to ensure transparency and accessibility.
5-3. Fulfillment of Social Responsibility
  • The Group contributes to public finances and the development of local communities through responsible tax payments. As a global corporate citizen, the Group is committed to promoting a culture of tax transparency.