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Our Tax Principles

More information on the taxes paid by Inter IKEA Group companies can be found in our annual Tax Report. In this report we give insight into how our effective tax rate is build up, we share a country-by-country report for corporate income tax and provide a break-down of our total tax contribution.

Tax principle 1 - Compliance

We are committed to complying with all tax legislation and paying taxes in accordance with the rules and regulations in the jurisdictions where we operate.

Tax principle 2 - Business rationale

We believe in the principle that tax should follow business. There is always a business reason for operating in a certain country. We pay tax in the countries where we operate based on the value created there and the economic reality of our business.

Tax principle 3 – Transfer pricing

We apply the arm’s length principle and follow international transfer pricing guidance when pricing transactions with group companies. We are consistent in our pricing across the countries where we operate and maintain documentation to support the transfer pricing policies applied.

Tax principle 4 - Relationship with tax authorities

We act with integrity towards tax authorities in all the countries we operate in. When tax law is complex or unclear we strive for open and constructive dialogue with tax authorities to achieve clarity. This will always be done on the basis of full disclosure of relevant facts and circumstances.

Tax principle 5 - Transparency

We are transparent about our approach to tax and our tax position. We do this by giving insight into how our effective tax rate is built up, disclosing our country-by-country report for corporate income tax and providing a break-down of our total tax contribution.

Tax principle 6 - Governance

We have a tax policy in place based on our tax principles that has been approved by the Finance Committee of our Management Board. The Finance Committee receives regular updates on material tax matters and we also report annually to our Audit Committee on our tax position. Inter IKEA Group has the mechanisms in place to safeguard adherence to our tax policy.