Sustainable development
Tax policy
Release time:
2024-07-04
Article 1 Purpose
Lijun Pharmaceutical Group Co., Ltd. and its subsidiaries (hereinafter collectively referred to as "the Group", "the entire Group" or "we") fulfill tax responsibilities in a responsible manner, implement strict and transparent tax management, establish an effective tax risk management system, and effectively safeguard the needs and long-term interests of all stakeholders. To standardize the tax management work of the entire Group, this tax policy (hereinafter referred to as "this policy") is specially formulated to achieve our sustainable development and actively fulfill social responsibilities.
Article 2 Scope of Application
This policy applies to the entire Group. Each unit of the Group shall fully comply with this policy when formulating internal tax management related systems.
Article 3 Principles
(1) Compliance with Tax Laws and Regulations
We commit to comply with the provisions and spirit of the tax laws and regulations of the countries where the Group operates, including but not limited to the "Tax Collection and Administration Law of the People's Republic of China", "Implementation Rules of the Tax Collection and Administration Law of the People's Republic of China", "Corporate Income Tax Law of the People's Republic of China", "Implementation Regulations of the Corporate Income Tax Law of the People's Republic of China", "Interim Regulations on Value-Added Tax of the People's Republic of China", and "Implementation Rules of the Interim Regulations on Value-Added Tax of the People's Republic of China", etc.
(2) Pre-planning
We will shift the focus of tax management work forward, establish and improve the pre-forecasting and pre-evaluation mechanisms for tax-related business, and strengthen the pre-planning and control of tax management.
(3) Reasonable Tax Planning
We commit not to transfer the created value to low-tax regions, not to use tax structures without commercial substance, and to adopt the principle of independent transactions for transfer pricing. Each unit of the Group should standardize tax payment behavior and properly plan tax schemes to reduce tax risks.
(4) Maintain Good Tax-Enterprise Relations
Proactively communicate with government tax management departments on significant tax-related matters, aiming to reach a consensus with tax authorities and maintain good tax-enterprise relations.
Article 4 Management Strategies
(1) Strictly regulate the tax payment behavior of the Group and its subsidiaries;
(2) Establish and standardize the tax risk management system to effectively prevent tax risks;
(3) Formulate and improve tax risk management objectives;
(4) Establish a tax risk management information system covering all aspects of risk management processes and internal control systems, as well as information communication and processing mechanisms. Clarify the requirements for tax risk control, maintain good communication, and ensure timely and effective evaluation and monitoring of various tax risks.
Article 5 Decision-Making Body
This policy has been reviewed and approved by the ESG Committee under the Board of Directors ("ESG Committee"). The ESG Committee regularly reports the implementation of this policy to the Board of Directors and provides suggestions for decision-making and supervision.
The ESG Committee has full responsibility for the execution, supervision, and regular review of this policy.
Matters not covered by this policy shall be implemented in accordance with relevant laws, regulations, and normative documents.
This policy shall take effect from the date of promulgation.
Lijun Pharmaceutical Group Co., Ltd.