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Tax Strategy

Tax Strategy

Tax Risks

Tax Risk Management Activities

SK bioscience complies with domestic and international tax policies and regulations and faithfully fulfills its obligations to file tax returns and pay taxes. We do not transfer income to other countries to exploit differences in tax laws or loopholes in the international tax system. Moreover, we ensure that taxable income is allocated consistently with the value created in each country where we conduct business activities. To proactively manage tax risks, we seek advice on taxes from external tax experts. For major tax issues, we consult tax authorities in advance and carry out tax-related activities based on authoritative interpretations obtained during these consultations.

Tax Risk Assessment

We evaluate and manage tax risks that may arise due to ongoing changes in tax policies, as well as those associated with our business activities, including new growth investments. Recognizing the complexity of tax laws and differences in interpretation, we understand that it is impossible to eliminate all tax risks entirely. Therefore, our focus lies in preemptive identification and management of uncertain tax issues. To proactively prevent such risks, we continuously monitor domestic and international tax laws, as well as tax trends in each country, and cooperate and communicate with tax experts.

Related Party Transactions

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.

Tax-related Decision-making System

  • Accounting Team

    • As a working-level body in charge of tax strategy, the accounting team coordinates tax- related matters and manages risk
    • Regularly attending seminars on revised tax laws hosted by accounting firms to promote the internalization of tax management policies and principles

  • Report tax-related settlements, risks, and unusual matters

  • Finance Division

    • Reviews tax-related risks and unusual matters reported by the accounting team
    • Checks whether tax payments have been made in accordance with our tax policy

  • Report tax-related risks and important issues

  • CEO

    • Tax-related settlements, risks, and important issues are directly reported from the finance division to the CEO
    • Approves the final decisions

Contribution to National Finance and Community Development

SK bioscience’s tax employees fulfill their obligations to report and pay taxes in accordance with relevant laws and regulations, adhering to the principle of maintaining a transparent relationship with tax authorities. In 2022, we paid KRW 192.8 billion in corporation taxes, demonstrating our commitment to contributing to national finances and the development of local communities through the faithful fulfillment of our tax obligations. As our business size will continue to expand, we anticipate that our contribution to national finances will also grow accordingly.