Tax Approach

Through its tax principles, internal policies, and actions, Sika is committed to being a “good corporate fiscal citizen”in pursuit of a long-term sustainable tax strategy, while fully and efficiently complying with national and international tax laws and regulations. Sika’s tax approach is in line with 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 where a fair amount of taxes is paid in each jurisdiction in which the company operates.

The outcome of the business-oriented approach is always checked for its compliance with all applicable laws. Such an approach results in an Effective Group Tax Rate which reflects Sika’s global footprint, the decentralized nature of the business, and the Group’s successful local operations. Sika’s 2016 Country-by-Country Report, following the relevant OECD Guidelines, demonstrates that Sika’s Corporate Tax proactively implements new international tax rules and complies with new requirements where applicable.

As a new standard, the OECD/G20 requires countries to request multinational enterprises to prepare and file a Country-by-Country Report containing aggregate tax information per country relating to the global allocation of the income, the taxes paid, and certain other indicators. For the Sika Group, the 2016 Country-by-Country Report was filed during 2017 with the Swiss Tax Administration on a voluntary basis making Sika one of the first Swiss Groups to start filing for the financial year 2016, two years ahead of the time when the reporting obligation will come into effect in Switzerland.

As foreseen by the OECD, the Swiss Tax Administration will share this report with other countries where Sika has a taxable presence in order for their authorities to monitor that Sika is paying its fair amount of taxes.