Tax Strategy

We, DMG MORI, contribute to the development of various stakeholders in accordance with our Mission Statement. To this end, we recognize the importance of complying with the laws and regulations of all countries in which we operate, continuing to pay appropriate taxes to contribute to those economies and societies as a responsible corporate citizen.
As an integral part of this approach, we manage and minimize tax risks and increase corporate value.
To achieve these objectives, we have established and operate the DMG MORI Global Tax Strategy and Policy.

We manage our tax affairs in accordance with our Code of Conduct at all times.
The Global Tax Strategy and Policy is approved by the Board.
The company regularly reviews its Global Tax Strategy and Policy. These reviews are performed by the Chief Financial Officer (CFO) and auditors.

The CFO has overall responsibility for the company's tax affairs.
In accordance with the Global Tax Strategy and Policy, the CFO establishes and maintains our tax management structure and properly executes tax-related duties. The CFO oversees the tax management environment across the group and reports any significant issues identified to the Management Committee as necessary.

We will understand and comply with the legislative intentions of all relevant tax laws, regulations, and reporting requirements in the jurisdictions in which we operate. If we discover instances of non-compliance we will seek to resolve them with the tax authorities appropriately.

We understand the legislative intentions and content of the tax incentives available in each jurisdiction (or region) and make appropriate use of them in line with the substance of our business. We do not engage in tax planning or use tax havens (as defined by the OECD) for the purpose of tax avoidance.

Transactions between DMG MORI group entities shall be structured in accordance with the operations of the business and produces an allocation of income to the appropriate entities and the relevant jurisdictions in which we do business that is consistent with the ‘arms-length’ principle outlined in the OECD Transfer Pricing Guidelines. Based on the value created through its business activities, the company pays appropriate taxes in the relevant tax jurisdictions as stipulated by the tax laws of those countries. We do not artificially transfer profits from one business location to another to avoid taxation.

We also prepare and maintain transfer pricing documentation in accordance with the tax laws and regulations of the respective jurisdictions. We submit such documentation to the tax authorities in those jurisdictions where required or requested.

We seek to build constructive working relationships with tax authorities around the world. We strive to reduce tax risks by obtaining opinions or agreements from the authorities prior to any transaction if a transaction arises for which the tax interpretation is unclear.
In the event that we receive guidance from the tax authorities, we will endeavor to clarify and resolve the issues in a positive and professional manner, in doing so reduce the likelihood of a future recurrence.

Our activities are driven by business needs. Given a choice between different alternatives to implement a business transaction, we will determine the most appropriate option considering together our legal, commercial, financial, tax, strategic, and reputational objectives.

Recognizing that the application of tax laws and regulations to specific transactions can be highly complex, we will take positions that we believe are consistent with the manner in which the law and regulations should be applied upon examination or related proceedings. We may seek or obtain external advice with respect to these issues as appropriate.