Legal

Kyowa Kirin International’s Tax Strategy

The Kyowa Kirin International Group (the “Group”) is a rapidly growing specialty pharmaceutical group engaged in the development and commercialisation of prescription medicines. The Group is focused on the EMEA region and is a 100% subsidiary of Tokyo-based Kyowa Kirin Co. Ltd.

In all undertakings, including tax, the Group conducts itself in line with its values of commitment to life, innovation, integrity and teamwork/wa.

Commitment to life
The Group recognises that in each of the jurisdictions in which it operates, the taxes raised are a significant, and direct, contributory factor to the local government’s ability to influence the well-being and health of those who live there. The Group adopts a prudent approach to tax planning and does not engage in aggressive or artificial tax planning schemes. The Group has a tax function that is intended to support the business and not to lead the business. This approach is key to ensuring that the substance of the business determines its tax footprint.

Innovation
The Group is fully committed to the implementation of the BEPS recommendations and keeping abreast of international tax developments. The Group seeks to proactively utilise technology and digitization to ensure compliance.

Integrity
The Group seeks to take advantage of such tax reliefs and allowances as are made available to it by governments or fiscal authorities and seeks to apply reliefs in a manner consistent with the letter and spirit of the relevant legislation. Where appropriate the Group seeks Advance Pricing Agreements with the relevant tax authorities to provide both transparency and certainty to our affairs.

It is The Group’s intention to have little more than a minimal level of tax associated risk present within the Group and whilst some risk will inevitably arise, the Group will seek to find certainty in respect of this within a short but appropriate timescale.

As part of our tax governance processes, we rely upon our in-house tax team, a network of external experts and our relationships within the industry to allow us to ensure our approach remains in line with best practice. Reviews of our processes, procedures and outputs are performed by internal and external auditors and all material tax positions require sign off by senior managers or directors. Our in-house tax team are suitably qualified for their roles and are supported with regular training.

Teamwork/Wa
The Group engages with HMRC in an open and constructive manner with regular dialogue between the Group Tax Manager and our HMRC Customer Compliance Manager allowing for any areas of disagreement or points of interpretation to be resolved on a timely basis. Where available the Group will seek clearance and confirmation from HMRC to provide certainty of tax treatment on any significant transactions. The Group will continue to strengthen and deepen our relationships with HMRC (and her overseas equivalents) to allow for clarity and predictability in our tax affairs.

This policy is reviewed annually and applies to all companies within the UK Group¹. The Group regards this publication as complying with the duty under para 19(2) Sch19 FA2016. This strategy is applied throughout the wider Kyowa Kirin International Group and is adopted in the UK by the board of KKI plc on an annual basis, corresponding to the relevant accounting period.

It was last approved by the Board of KKI plc on 13 December 2022 and published on 29 December 2023, and reflects the strategy applied during the year ended 31 December 2022. It is foreseen that this strategy will also be applied for the year ended 31 December 2023 and will be published as such during that year.

¹This policy applies to the following companies, Kyowa Kirin International Plc, Kyowa Kirin Pharmaceutical Development Limited, Kyowa Kirin Services Ltd, Kyowa Kirin Limited and Archimedes Pharma UK Limited. This strategy is consistent with the Kyowa Kirin Group Tax Policy implemented and applicable to the wider Group¹.

¹ https://www.kyowakirin.com/sustainability/governance/taxpolicy/index.html