All Kubota Group employees share their corporate principles -the Kubota Global Identity- and will contribute to their stakeholders and society by conducting corporate activities in which each individual fulfills his or her role and responsibilities. By doing so, they are aiming for the ongoing synergistic development of the Kubota Group and society.
We regard paying the appropriate amount of taxes as a duty and an important part of our social contribution.
Based on this policy, we commit to enhancing our corporate value by managing our taxes properly.

Our Principles

• The Kubota Group complies with the tax laws and regulations of each country, as well as with the relevant international tax standards (OECD Guidelines, etc.). We enhance our corporate value by paying the appropriate amount of taxes.
• We believe tax payments are part of a company’s key social responsibilities; therefore, we provide training and educational opportunities to our employees.

Accountability and Governance

• The Tax Management Department in our global headquarters in Japan reports to the group executive vice president in charge of finance and leads our tax governance activities in collaboration with our affiliates.
• Material risks are reported to the board by the group executive vice president in charge of finance, who is the officer responsible for tax-related risks.

Managing Our Tax Risks

• Tax laws and regulations in each country where the Kubota Group operates are often complex and subject to interpretation. Therefore, we manage risks, particularly in complicated cases, by seeking advice from external advisors and advance rulings from tax authorities.
• We also manage the material risk of double taxation by using bilateral advance pricing agreements or mutual agreement procedures.

Tax Planning and Tax Avoidance

• The Kubota Group is committed to making optimal tax payments, striving to enhance corporate value by utilizing legislated tax preferences to the degree that is consistent with the purposes of our business.
• We do not engage in abusive tax planning or deliberate tax avoidance that contravenes the intent of tax provisions and international tax standards.

Transfer Pricing

• The Kubota Group engages in the arm’s length principle for intra-group transactions. We calculate prices based on the function and the risk of the parties involved, and we comply with OECD transfer pricing guidelines.

Transparency

• The Kubota Group discloses important tax-related matters to our stakeholders in a timely manner.
• We strive to establish trust with tax authorities by providing appropriate right information in a timely manner and engaging with authorities openly and transparently.
• The Kubota Group made the following tax payments during the fiscal year ended December 2022.

（Billion Yen）

	Japan	North America	Europe	Asia	Other	Total
Income Tax Paid FY2022 by region	45.2	20.3	5.0	13.1	2.4	86.0

• The above amounts are based on "Country-by-Country Report" submitted to Japanese Tax Authorities, and not directly related to the Consolidated Financial Statements.