Fulfilling tax obligations through tax compliance and risk management is an important factor in creating economic and social value, as well as an essential component of ESG management. Therefore, we constantly review the appropriateness of the application of tax laws with the advice of external experts in order to improve the credibility of our tax strategy.

To ensure tax transparency, we disclose detailed statements of sales, tax-free revenues, net profit before deduction of corporate taxes, corporate tax costs, tax adjustments and tax amounts in South Korea, where our principal operations are located.

SK bioscience faithfully reports and pays taxes in accordance with laws and regulations, and maintains a transparent relationship with tax authority. To actively manage tax risks, we seek advice on tax payment plans from a group of external tax experts. On major tax issues, we consult with experts and tax authority in advance and carry out tax-related activities based on authoritative interpretation obtained during the queries.

SK bioscience complies with domestic and foreign laws by evaluating and managing tax risks that may arise in the course of business activities such as strengthening business competitiveness and investing in new growth strategies. However, we recognize that all tax risks cannot be completely eliminated due to the complexity and differences in interpretation of the tax law. Therefore, we focus our risk management activities on the early identification of uncertain tax issues, and work with tax experts to communicate with tax authority.

When it comes to transactions between related parties, SK bioscience observes the arm’s length principle aligned with the OECD Transfer Pricing Guidelines and the laws of each country. For transfer pricing transactions with related parties abroad, we will prepare a base erosion and profit shifting(BEPS) report and a transfer pricing report with an external tax expert if necessary. We will also oversee the implementation of transparent tax strategies such as the prevention of tax evasion and income transfer.

SK bioscience contributes to the national finance and development of local communities by faithfully fulfilling its tax obligations. In 2021, we paid KRW 116 billion in taxes, believing that our contribution to the national finance is expected to increase as our business expands further.