Our approach to tax

Indorama Ventures Public Company Limited and its subsidiaries and affiliates take a responsible approach to the management and control of taxation issues and ensure compliance with all our tax disclosures and filing obligations. We are mindful of our duties in various tax jurisdictions in which we operate. The Company operates transparently towards tax authorities with a focus on trust and compliance with best practices.

Tax Strategy

Governance, statutory compliance and risk management
Indorama Ventures has a robust governance process, headed by the Head of Finance and Taxation, who is also a Member of the Board, to manage and control its tax affairs and risks. The company has policy to comply with applicable tax laws. Tax payments and tax filings are made on the respective due dates. Adequate internal and external resources are employed to ensure that tax obligations are properly understood. Training sessions are organized to ensure internal competency and clarity on tax matters. The Company’s tax policy encourages Advance Rulings from tax authorities and/or opinions from reputable advisors on all important issues to mitigate uncertainty. The Company prepares and maintains records accurately in accordance with applicable GAAPs and other standards where we operate businesses. The Company manages tax risks to ensure that key risk areas are monitored and material risks are minimized. The Company’s Group CEO as well as Senior Management reviews tax strategies and risks as well as internal controls and governance with respect to tax functions.

Accounting and disclosures
The Company adheres to rigorous standards on tax accounting and disclosures. Our policy not only encourages transparent relations with investors, auditors and tax authorities, but also aims to gain the trust of our stakeholders and society.

Tax optimization and Transfer Pricing policy
All tax optimization measures are analyzed and implemented in a highly compliant manner. The Company’s tax policy foresees and complies with the fundamentals of any legislation, pending or in process, which may be introduced in the next couple of years.

In the world of Transfer Pricing post BEPS, IVL follows the substance over form philosophy with the following objectives:
  • The more core functions, risks and assets allocated to an intragroup party, the higher its profit potential should be according to the arm’s length principle.
  • To determine whether the economic reality is consistent with the legal reality for which contribution analysis is performed.

Investment structures
The regulations of investment holding jurisdictions are properly understood and all requisite requirements are ensured in investment structures.

Tax Reporting

We are committed to an open and principles-based approach towards taxation. With this view, we aim to ensure that we are appropriately transparent in our economic contributions, therefore providing greater insight and clarity:

Corporate Income Tax (CIT) Contribution by Regions for the year 2016

In line with our continued effort for transparency we are also herby providing information on countries with our highest Corporate Income tax expenses:-

(A) Revenue for each region is un-related revenue
(B) CIT includes Deferred Income Taxes
* Countries presented are the top Countries accruing Income taxes