The Japan Post Group's basic policy on taxation is as follows.

In its Charter of Corporate Conduct ("Group Charter," hereafter), the Japan Post Group ("the Group," hereafter) has set forth the principles of "ensuring trust," "observing norms" and "respecting coexistence.“ To date, the Group has considered transparent taxation operations including legal compliance and proper tax payments to be an important part of fulfilling its social responsibility, and has pursued taxation compliance initiatives in accordance with the Group Charter.
To make even greater contributions to the development of a sustainable society in the countries and regions into which the Group operates, the Group has formulated the Japan Post Group Tax Policy ("the Policy," hereafter) and clarified its basic approach to Group taxation as follows.

1. 1.
   Basic approach

   • ・
     The Group recognizes that paying taxes is part of corporate social responsibility, and will contribute to the development of a sustainable society in the countries and regions in which it operations through proper tax payments.
   • ・
     The Group will observe taxation law and other laws and regulations in the countries and regions in which it operates, while understanding and appropriately responding to the importance of international initiatives as typified by the BEPS Project operated by the OECD.
   • ・
     The Group will conduct training and other internal awareness-raising activities to ensure that each employee recognizes that observing taxation compliance mitigates taxation risks and is the best strategy for enhancing corporate value.
   • ・
     The Group carries out taxation work under the Group CFO, who is the Board Member, as well as the executive officer in charge of accounting and finance, who is responsible for administrative work related to corporate accounting. Important taxation matters for the Group such as the results of tax investigations are reported to the Management Meeting and other meeting bodies as needed by the Group CFO or the executive officer in charge of accounting and finance. Financial statements, including tax expenses, etc., are approved by the Board of Directors and disclosed appropriate in Annual Report.
   • ・
     The Policy applies to the entire Group, including Japan Post Co., Ltd., Japan Post Bank Co., Ltd., Japan Post Insurance Co., Ltd. and Toll Holdings Limited, which operates international logistics businesses. The holding company Japan Post Holdings Co., Ltd. will coordinate with Group companies while endeavoring to carry out taxation work in a stable fashion.

1. 2.
   Implementing Proper Tax Payments and Ensuring Taxation Transparency

   • ・
     The Group will strive to mitigate taxation risks and optimize tax expenses, while making every effort to enhance corporate value and maximize shareholder value. Moreover, the Group will not engage in tax reduction efforts through interpretations or applications that deviate from the spirit of laws or regulations, in using tax structures without commercial substance, or in tax planning for the sole purpose of tax avoidance.
   • ・
     The Group will not engage in arbitrary tax avoidance by utilizing countries or regions with zero taxes or low tax rates (so-called tax havens) or similar arrangements. In the event that investments are made in tax havens for business reasons, the Group will follow the tax haven countermeasures established by each country and make proper tax payments.
   • ・
     For the trading prices applied to the Group's overseas-related transactions, in accordance with the taxation laws in the countries and regions in which the Group operates, and guidelines on transfer pricing published by international organizations such as the OECD, the Group will endeavor to distribute income appropriate to each country by setting prices based on arm's length pricing. In addition, the Group will observe obligations to submit or preserve transfer pricing documents and appropriately document the information in accordance with taxation law and other requirements.
   • ・
     In cases such as when advanced and multi-faceted considerations of taxation or accurate interpretations of taxation law are required, the Group may seek advice from outside experts such as tax accountants and tax consultants, and will endeavor to reduce taxation risks by utilizing advance consultations with taxation authorities.

1. 3.
   Mutual Trust with Taxation Authorities

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     The Group will give sincere and factual explanations to taxation authorities and do its utmost to build a relationship of trust with taxation authorizes by dealing with them in good faith.
   • ・
     When there are differences of opinion with taxation authorities, the Group will strive to resolve them through proactive and constructive dialogue. Additionally, the Group will implement appropriate corrective action and improvement measures and strive to prevent repeat occurrences in response to issues pointed out by taxation authorities, except when filing objections to taxation authorities' actions or opinions.

• Tax Initiatives（Japan Post Bank）
• Appropriate Tax Initiatives（Japan Post Insurance）
• Tax Compliance Policy（Toll Holdings Limited）

Note: Amounts are listed based on Country-by-Country Report submitted to the taxation authorities.
Regions that account for less than 1% of the total are grouped together under "Other."