Tax Strategy

SK earthon Co., Ltd. (“SKE”), in order to continue its stability and growth, create value for its stakeholders, play a critical role in social and economic development, and further, contribute to the happiness of mankind, deems it its ‘core value’ to perform its obligations to file tax returns and pay taxes in good faith under the law and evaluate and manage various tax risks which can occur in the process of its business activities.

• 01
  SKE files tax returns and pays taxes in good faith, not only under the law of Korea but under those of various countries where it engages in business activities, and performs, in good faith, its obligations under the law as a taxpayer, including the submission of relevant materials, in transparent relations with individual countries’ tax authorities.
• 02
  SKE complies with domestic/overseas laws by evaluating and managing all tax risks which can occur from its business activities including strengthening the competitiveness of existing businesses, reorganizing its businesses, and pursuing global growth and investment. During the evaluation and management of tax risks, if necessary, SKE makes final decisions based on consultation with domestic/overseas tax experts and law-enforcing (executive) and -legislating (legislative) authorities.
• 03
  In transactions with its related parties, SKE adopts the principle of arm’s length transactions under OECD’s Transfer Pricing Guidelines and individual countries’ laws, and as regards transfer pricing transactions with its overseas-related parties, prepares transfer pricing reports with outside tax experts and manages the progress of the transactions.
• 04
  SKE’s employees handling its tax matters perform their job based on the principle of performing, in good faith, SKE’s obligation to file tax returns and pay taxes under applicable laws and maintain transparent relations with tax authorities.
• 05
  We do not conduct transactions or contracts that transfer income between countries to take advantage of differences between different countries’ tax laws or loopholes in international tax systems. Furthermore, we allocate taxable income in a manner that is consistent with the value generated through business activities in each country.
• 06
  We do not use both tax structure and tax haven that unfairly reduces our tax burden by taking advantage of differences between tax laws and tax treaties, loopholes, special tax treatment, or other flaws. We faithfully fulfill our duties to pay taxes on international transactions through a normal tax structure.