Since its founding in 1989, SPARX Group ("the Group") has aimed to realize its vision "to be the most trusted and respected investment company in the world".

In order to realize this vision, we have formulated this basic tax policy to fulfill our corporate social responsibility as an investment company to make the appropriate tax payments in all jurisdictions in which we conduct our business. Also, we would like to share our approach on tax matters, response policies, and other related matters with all of our stakeholders.

1.Establishment of Framework

The Group recognizes the importance of tax risk and therefore a basic tax policy was established and subsequently approved by the Group's Board of Directors. We will develop a tax governance system whereby we will enhance our internal control system in relation to tax matters in cooperation with our local and overseas Group companies. We will endeavor to raise awareness among our officers and employees towards tax compliance while establishing the management system of the departments responsible for tax matters. We will also strive to increase our knowledge in tax matters participating in seminars, and other similar activities.

2.Legal Compliance

The Group will comply with tax-related laws, regulations, and ordinances in all jurisdictions in which we conduct our business as well as relevant international tax standards and the guidelines published by the OECD. The Group will properly submit tax returns, pay taxes and report on taxes.

3.Realization of Proper Tax Obligations

The Group will appropriately manage our tax obligations by eliminating double taxation through tax treaties and other means, and optimizing tax expense through the appropriate use of tax treaties. In addition, the Group does not engage in any business activities where the sole aim is to avoid paying taxes or shifting profits, which are not in line with the business substance of our operations.

4.Transfer Pricing Taxation

For transactions with our overseas Group companies, the Group sets appropriate prices that comply with arm's length principles in accordance with the OECD Transfer Pricing Guidelines.

5.Good Relationship with Tax Authorities

The Group seeks to develop and maintain good relationships with tax authorities by responding in an open, cooperative and honest manner.

6.Revisions

The Group will revise this policy in a timely manner to reflect changes in local applicable laws and regulations in all jurisdictions in which we conduct our business as well as relevant international tax standards, such as the OECD Transfer Pricing Guidelines, arm's length principle, as established by international organizations.

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Established on December 20, 2022