Ethical management, the basis for continuous growth and development
SK incheon petrochem is dedicated to being a trusted company that creates value for our diverse stakeholders and to help create a better world based on SKMS as its management philosophy.
SK incheon petrochem Co., Ltd. (“SKIPC”), in order to continue its stability and growth, create value for its stakeholders, play a critical role in social and economic development, and further, contribute to the happiness of mankind, deems it its ‘core value’ to perform its obligations to file tax returns and pay taxes in good faith under the law and evaluate and manage various tax risks which can occur in the process of its business activities.
Many countries, in order to regulate international tax evasion through acts of BEPS (Base Erosion and Profit Shifting), are amending or enacting tax laws to obligate the preparation and submission of the OECD-recommended country report, etc., and to increase tax revenue in response to public spending increases, are strengthening taxation in cases of tax evasion.
To respond to individual countries’ aforesaid laws obligating the preparation and submission of the BEPS report, etc., SKIPC has retained outside experts and is conducting a project on the diagnosis and documentation of BEPS risk for its global work sites.
SKIPC, in transfer pricing transactions with its key global work sites, recognizes its double-taxation risk due to tax jurisdiction disputes between Korean and local tax authorities and to solve that, utilizes bilateral tax treaties and APA (Advance Pricing Agreement) to respond to the double-taxation risk.
SKIPC signed an APA for its Chinese subsidiaries with Chinese tax authorities in 2013, and is currently in contact with Chinese tax authorities for an application to renew the APA. Also, SKIPC is planning to go ahead with an APA application to Spanish tax authorities for its work sites in Spain.