Through its tax principles, internal policies, and actions, Sika is committed to being a socially responsible corporate fiscal citizen. Sika pursues a long-term sustainable Tax Strategy with a focus on compliance with national and international tax laws and regulations.
A reasonable Tax Strategy with active management of tax matters ensures that Sika pays a fair share of tax in each of the 101 countries where Sika operates. This section outlines the most important aspects of the Sika Group’s Tax Strategy in relation to compliance and corporate sustainability.
The Tax Strategy, based on sustainable practices, business reality, and adhering to national and international tax regulations, has ensured Sika a very stable and fair effective tax rate year after year. The success of this Tax Strategy relies on Sika’s commitment to be a socially responsible fiscal citizen, paying a fair share, and protecting shareholders’ interests.
Sika’s tax approach is in line with the Organisation for Economic Co-operation and Development (OECD)/G20 guidelines and their general objectives. By following a business-oriented approach based on functions, assets, and operating risks when determining processes and transactions, Sika has a market-based outcome.
Therefore, a fair amount of taxes is paid in each jurisdiction where the company operates. The outcome of the business-oriented approach is always checked for its compliance with all applicable laws. Furthermore, potential impacts on stakeholders and Sika’s reputation are considered. In line with Sika’s corporate values, the objective of Sika’s Tax Policy is to comply in good faith with the letter and the spirit of all applicable tax laws and obligations in all countries where the company operates, across all direct and indirect taxes, as a company and employer, as well as with international treaties and guidelines. This approach results in an effective Group tax rate that reflects Sika’s global footprint, the decentralized nature of the business, and the Group’s successful local operations.
Tax Risk Management
Based on genuine business rationale and with a long-term view of sustainability and predictability, Sika proactively manages, monitors, and controls the tax aspects of its business operations and transactions. The company manages its total tax costs for doing business within clear risk parameters in line with the Sika Group business operations and responsible strategies. Sika adheres to the “arm’s length principles” and complies with local laws and regulations for pricing of intercompany transactions. Sika companies maintain contemporaneous transfer pricing documentation in compliance with local legislation.