Compliance with Laws and Regulations

As stated in the "JTEKT Global Conduct Guidelines," we commit to the followings:

• We will endeavor to correctly interpret laws and regulations of each country or region and internal rules, and act in accordance with the spirit thereof.
• We will perform accounting and financial management duties in accordance with laws, regulations, internal rules, etc. in order to appropriately process accounts and pay taxes.

Response to Transfer Pricing Regulations

We adhere to the OECD Transfer Pricing Guidelines, setting transaction prices between group companies based on the arm's length principle, and appropriately reporting income corresponding to our business activities in the proper tax jurisdictions. This is supported by our group transfer pricing policy.

Tax Planning

We do not engage in tax planning that exploits tax havens or tax treaties in a manner that leads to tax base erosion or profit shifting, outside the countries or regions where our business operations are located.

Optimization of Tax Costs

We endeavor to optimize tax costs by utilizing tax treaties and laws to eliminate double taxation and appropriately taking advantage of preferential tax regimes, within the scope of business purposes, actual conditions, and the spirit of the law.

Relationship with Tax Authorities

In cases where doubts arise or are foreseen regarding appropriate tax payment, we will engage in consultations with the tax authorities of the respective countries or regions as necessary. During such consultations, we will accurately convey our business activities and exchange information with a sincere attitude.
We maintain a sound and normal relationship with tax authorities and do not provide undue advantage.

Tax Governance

Under the direction of the Board of Directors, the Chief Financial Officer (CFO) has the ultimate responsibility for establishing and maintaining the tax corporate governance, managing tax risks, and addressing significant tax issues within our group. The CFO will report the status of governance based on this policy to the Board of Directors and Audit & Supervisory Board, among others.
The Finance & Accounting Department of JTEKT Corporation manages the tax affairs of the entire group. Additionally, we strive to establish a framework and environment that fosters sufficient communication between the related departments of JTEKT Corporation and group companies.

August 1st, 2024
JTEKT Corporation
President