BioPorto recognizes that tax contributes to the development of the countries where we operate and that a responsible approach to tax is essential to the sustainability of the societies where we operate. We apply a sustainable tax approach globally with the aim of ensuring tax compliance and value creation for all stakeholders.
Complying with tax rules across many tax jurisdictions can be complex as the legislation and interpretation hereof may change over time. We strive to manage this risk by having strong compliance processes and transparent communication with tax authorities. The BioPorto Tax Policy outlines the principles for the governance of tax matters at BioPorto.
This Policy shall be reviewed and approved by the Board of Directors annually.
2. Scope and Application
For the purposes of this document, tax is defined as all financial charges or levies applied by a tax authority and covers both direct and indirect taxes.
The Tax Policy applies to all controlled entities in BioPorto. BioPorto will periodically review the Tax Policy, and any amendments will be approved by the Board of Directors.
In the event a BioPorto Policy conflicts with local needs or requirements, the Board of Directors or Executive Board of the subsidiary can approve a BioPorto Policy with reservations. Any material deviations from the BioPorto Policy shall be reported to the Board of Directors of BioPorto.
3. Target Group
The Tax Policy applies to all employees, functions, and units within BioPorto, and all separate legal entities once adopted by their Executive Management and/or Board of Directors, as applicable.
4. Content of the Tax Policy
The Tax Policy describes the conduct for responsible behavior that employees of BioPorto shall follow:
- We are appropriately open and transparent with tax authorities, responding to relevant tax authority inquiries in a straightforward and timely manner while respecting corporate processes for the authorized disclosure of confidential information. We follow established procedures and channels for all dealings with tax authorities, government officials, ministers and other third parties in a professional and timely manner. Where there is significant uncertainty about how the tax rules apply to our business, we will seek an early dialogue with tax authorities, where appropriate and possible. Where there are misunderstandings of fact or law, we will seek to work with the tax authorities, identify the issues and explore options to resolve any misunderstandings or disagreements. In situations where we cannot resolve disagreements through dialogue, we will resolve our disagreements in the tax tribunals or courts to ensure the proper tax treatment.
- We strive to be compliant with applicable national and international tax laws and regulations. We are committed to timely and materially accurate corporate registration, filing of tax returns by their due dates, collection and payment of taxes, appropriate documentation, and statutory tax reporting.
- We interpret tax laws with due respect to their intention. Complying with legislation can sometimes be complex where legislation allows for different interpretations or choices, and legislation and interpretations tend to change over time. If a common practice or interpretation has not yet formed, we will form our opinion on the more-likely-than-not principle, and where appropriate seek advice from tax advisors and tax authorities to establish a reasonable interpretation. Where legislation and practice allow for different interpretations or choices, BioPorto will adopt a tax position that is justifiable, defendable and in accordance with the BioPorto Code of Conduct. The more-likely-than-not principle means that we will only adopt a position that we expect a court to uphold if challenged by the tax authorities.
- BioPorto structures its business in accordance with commercial and economic activities. We pay taxes in jurisdictions where we operate and where value is created. We are committed to responsible tax by adhering to international double taxation treaties, EU regulation and relevant domestic, OECD and UN guidelines, and thereby supporting the United Nations Sustainable Development Goals.
- We only use business structures that are driven by commercial considerations, aligned with business activity and that have genuine substance. We do not undertake transactions whose sole purpose is to create a tax benefit which is in excess of what is intended by relevant tax rules.
- Governments often implement tax rules to incentivize certain activities such as encouraging companies to increase investments or undertake research and development to stimulate growth or to create jobs. BioPorto is a growth company developing and commercializing life-saving diagnostic tests. We welcome such incentives, as they enable us and our customers to advance our mission. We therefore make use of incentives, tax reliefs and credits where they apply in areas where we have commercial substance.
- We disclose our tax payments in accordance with national and international requirements and good practice among peers.
- We manage our tax position and provide products, services, and solutions to customers in accordance with the applicable tax laws and regulations without challenging the boundaries of the tax law.
- We do not tolerate any illegal actions on tax. If we become aware of any customers or business partners engaging in tax fraud or tax evasion, we will cooperate with the authorities in accordance with all applicable rules and regulations.
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