Tax Guidelines and Intention

S Hotels and Resorts Plc. and its subsidiaries (“company” or “SHR”) adhere to corporate governance principles, especially in the area of tax management provided that the company has specified tax guidelines by emphasing on accuracy and transparency which can be verified. The company is committed to and complied with the laws, regulations and guidelines related to taxation as specified by the government. This includes the company’s domestic and foreign subsidiaries.

• Tax Compliance(calculation and filing) – Specify guidelines to ensure that SHR complied with tax laws, especially filing of taxes accurately and within specified timeframe.
• Tax Planning – Develop tax plan which is consistent with business strategy
• Transfer Pricing – Specify guidelines to ensure related transactions are being conducted at arm’s length and the document reflects transfer pricing in order to support the transfer pricing methodology.  
• External Tax Advisor – Specify guidelines for hiring tax advisor to ensure that tax advice from external consultant meets highest standards.

Furthermore, the company focuses on value-driven growth and tax responsibility by adopting sustainable business practices as a guideline for paying taxes to the government. The company exercises its caution when exercising any tax privileges and emphasizes the use of taxes privilege in accordance with the legal principles that align with the company’s sustainable business operations which is beneficial to the government. Additionally, the company pays taxes based on the government’s prescribed tax rates and is consistent with the commercial values provided that the company uses the current market price as the reference.

In this regard, the company avoids using complex tax structure in order to prevent any irregularity or distorted tax arrangements that deviate from the reality.

The company also believes that its tax guidelines reflect good governance principles, including an intention to manage taxes in a transparent manner with an aim to create a balance for the company and its stakeholders that are involved in the tax cycle.