News Reports on FANUC’s Transfer Pricing

March 18, 2024

FANUC CORPORATION

There have been some reports by the media on FANUC’s transfer pricing. In response, we would like to express our views on this matter as below:

Based on having received a correction notice from the Tokyo Regional Taxation Bureau, we have reported: "Income taxes for prior periods amounting to 3,212 million yen," in the Consolidated Quarterly Statement of Income for Q3 FY2023, released on February 9, 2024. To this, we have added the following note: "Due to receiving a correction notice from the Tokyo Regional Taxation Bureau based on the transfer pricing taxation."

We believe that our approach to the taxation on pricing for transactions between group companies (so-called "transfer pricing taxation") conforms to the laws and regulations of Japan and other countries, and that the prices are appropriate, and also that we have paid adequate taxes in Japan and other countries.

During the tax investigation by the Tokyo Regional Taxation Bureau, we explained our approach to transfer pricing, but there were conflicts in views. Without coming to a conclusion on the differences in perspectives, the correction notice was issued.

As regards the correction notice, we plan to take necessary measures in line with laws and regulations, in order to request the avoidance of double taxation.