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.

 

Starting in the 2016 business year, Sika was one of the first companies to submit an annual Country-by-Country Report to the Swiss Federal Tax Administration on a voluntary basis. This new OECD/G20 standard comprises pertinent information such as profit, taxes paid, and other factors of relevance to taxation per country in which companies are active.

 

In line with the OECD's intention, the Federal Tax Administration passes this report on to the tax authorities in the other countries in which Sika is subject to taxation. This demonstrates to these countries that Sika is duly complying with its tax obligations and paying its fair share of tax.