Group Policy on Tax Transparency

<Basic policy>

The JR East Group is working to realize content and affluent lives for everyone by creating new value focusing on people.

The JR East Group pays appropriate taxes in all countries and regions where it conducts business activities. We understand that it is our part of our corporate social responsibility to contribute to a better society and the development of the economy and local communities by returning a portion of the profits generated through our business activities.

The JR East Group recognizes that appropriate management of tax risks is an important factor in making business decisions, and that it builds trust with customers, local communities, shareholders and investors, and improves the corporate value of the JR East Group.

The JR East Group aims to achieve sustainable business growth and improve its corporate value over the medium to long term by establishing a highly transparent tax governance system that ensures appropriate tax payments and risk management.

<Compliance with tax-related laws and regulations>

The JR East Group complies with laws, ordinances, notifications, guidelines, etc. in all countries and regions where it conducts business activities, including Japan, and it makes appropriate tax filings and payments and refrains from engaging in any tax avoidance activities, including the use of tax havens.

The JR East Group conducts transactions with overseas affiliates at arm’s length prices based on the transfer pricing taxation system. In addition, the Group applies tax treaties signed with each country and region where it conducts business to eliminate the risk of double taxation and ensure the same economic benefits are not taxed multiple times.

<Tax governance>

The JR East Group has established a system in which employees with specialist tax knowledge carry out their duties appropriately under the supervision of officers in charge of the Finance & Investment Planning Department.

The JR East Group sincerely responds to and cooperates with tax authorities, maintains sound relationships with them, and does not provide them with any unjustified benefits.

In an effort to reduce tax risks, the JR East Group widely conducts internal education to share tax knowledge, effectively utilizes advice from external experts, and makes prior inquiries to tax authorities when necessary. If the JR East Group identifies any tax-related events or risks, it will report them to the Board of Directors, the Corporate　Planning Committee, the Audit and Supervisory Committee, etc. in a timely and appropriate manner according to their importance, and take the necessary measures.

<Trends in tax payments by the JR East Group>