Tax Policy

In its Charter of Corporate Behavior, Japan Exchange Group, Inc. (JPX) commits to compliance with all laws and regulations related to its business and to conduct corporate activities in line with social ethics and best practice. As a practical representation of this, JPX stipulates the below tax policy, which sets out its approach to compliance with tax-related laws, regulations, and other rules and fulfilment of its social responsibilities.

Compliance with Laws and Regulations

To ensure its public nature and credibility as the operator of Japan's core financial markets, JPX will comply with all tax-related laws, regulations, and other rules in place in the countries and regions in which it operates, and will not apply favorable tax regimes based on interpretations of said laws, regulations, or other rules which deviate from their original purpose. It will also not engage in abusive tax planning designed only for the purpose of tax avoidance.

Fulfilment of Tax Payment Obligations

JPX will strive to suitably fulfil its tax payment obligations in line with tax-related laws and regulations. In the case of cross-border transactions, it will strive to eliminate double taxation through, among other things, the use of tax treaties and appropriate treatment based on arm's length prices as set out in the OECD Transfer Pricing Guidelines. As JPX is a financial instruments exchange holding company group, the finance division of its holding company will supervise tax-related operations across all the consolidated group companies and appropriately implement tax payment. Also, in cases where, for instance, sophisticated and multifaceted consideration or accurate interpretation is required, JPX will work to appropriately fulfil its tax-payment obligations and minimize tax-related risk by seeking advice from external experts, consulting with the tax authorities in advance, or taking other actions where necessary.

Relationship with Tax Authorities

JPX will strive to maintain a mutually trusting relationship with the tax authorities by dealing with tax issues sincerely and appropriately. Furthermore, JPX will respond appropriately to requests for information disclosure or other communications from tax authorities in other countries, and will not provide improper revenue to any of these authorities for its own gain.