Tax Strategy

Coway faithfully fulfills its tax obligations based on a rational tax strategy.

• Establish and comply with tax reporting and taxation policies.
• The Board shall provide documented policies on overall risk management as well as specific areas such as foreign exchange risk, interest rate risk, credit risk, use of derivatives and non-derivative financial instruments and investments in excess of liquidity do.
• Information related to corporate tax is disclosed through the Audit Report and the Sustainability Report on the Electronic Disclosure System of the Financial Supervisory Service.

Coverage

Coway contributes to creating a virtuous cycle structure by increasing the tax revenue and public service of the government and maximizing shareholder profit by faithfully fulfilling the duty of the corporation not only in domestic but also overseas. Coway has subsidiary in Malaysia, the United States, and China, etc. We comply with the applicable national tax laws and OECD pricing guidelines for international transactions with overseas corporations and fulfill local taxation obligations.

Tax Reporting

In order to fulfill its duty to pay sincerely, Coway transparently discloses the tax information specified by the tax law (http://dart.fss.or.kr/). We also ensure transparency and objectivity through external audits. In the financial statements and notes in the audit report, information such as tax base cost calculation standard, deferred tax asset and liability, income tax expense structure and tax rate can be checked.

Taxation Governance & Risks

Coway continuously monitors tax regulations and governmental policies in order to understand and manage tax risks. Risk management is carried out by the finance department according to the policy approved by the board of directors. The Funds Department works closely with the consolidation companies to identify, assess and avoid financial risks. The Board provides documented policies on overall risk management, as well as documented policies on specific areas such as foreign exchange risk, interest rate risk, credit risk, use of derivatives and non-derivative financial instruments and investments in excess of liquidity. On the other hand, as the National Tax Service recently responds strictly to the tax evasion of the off-shore tax evasion and the international trade use tax evasion, and encourages the support of good faith reporting related to international transactions.