Tax

In line with our core values, we are committed to observing all applicable tax laws, rules, regulations, 
reporting, and disclosure requirements, wherever we are obligated to do so resulting from our 
business presence and transactions. 

Our tax policy is linked to our Code of Conduct, which sets out guiding principles on integrity and 
ethics in our business conduct. Nexperia’s management has adopted the Code of Conduct to 
underpin the commitment to socially responsible corporate citizenship and the pursuit of a 
sustainable future – economically, socially, and environmentally.

As a responsible taxpayer, Nexperia’s tax planning is based on long-term considerations and takes 
into account the interest of all stakeholders. Therefore, we believe it is essential to have a set of 
guiding tax principles and communicate openly and clearly about our tax approach.

Nexperia’s tax approach should always remain consistent with its overall business strategy, risk 
approach, and core values. The tax approach should ensure that:

• The strategy is adopted and followed consistently, with clear lines of responsibility and accountability.
• The strategy aligns with Nexperia’s overall approach to corporate governance and risk management.
• Nexperia pays the correct amount of tax required by the laws and regulations of the countries in which it operates. 

Tax principles

Compliance

In all its tax affairs, Nexperia is committed to complying with all relevant laws, rules, regulations, and 
reporting and disclosure requirements wherever we operate. We are guided by recognized 
international standards such as the OECD Guidelines and aim to comply with both the spirit and the 
letter of the tax laws and regulations.

Tax governance

Nexperia’s group tax department is in constant dialogue with senior management and the business 
groups. This ensures management is engaged and involved in all relevant tax matters. 

Our tax department is organized to ensure compliance with all tax laws and regulations in the 
countries where we operate. It is a centralized organization that manages both regional and 
functional requirements. Additionally, the organization regularly engages with external tax advisors 
and/or local tax authorities to ensure our tax obligations are correctly handled and disclosed in our
annual and quarterly reports.

The tax team is part of the Finance department reporting to the Chief Financial Officer (CFO). The 
CFO is responsible for regularly updating the Audit Committee, with support from the tax 
department.

Transfer pricing 

Nexperia operates in many different tax jurisdictions, and there are many transactions between 
Group companies. As a result, the transfer pricing for these transactions must reflect an “arm’s 
length” or market price. Our pricing is driven by the activities undertaken and the value created in 
each segment of our business according to OECD transfer pricing guidelines. This compliance should 
ensure all parties receive fair remuneration for their services. Our alignment with the arm’s length 
principle is supported by frequent benchmarking.

Nexperia does not have a presence in blacklisted jurisdictions as defined by the European Union and 
does not use artificial structures to achieve tax advantages or minimize tax liabilities.

Relationships with tax authorities

Nexperia seeks to foster constructive, professional, and transparent relationships with tax authorities 
based on integrity, collaboration, and mutual trust.

We are committed to the principles of openness and transparency in our approach to dealing with 
tax authorities wherever we operate around the world. We aim to conduct all dealings with tax 
authorities and other relevant bodies in a collaborative, courteous, and timely manner. To avoid any 
potential tax disputes, we aim to secure early agreements on disputed matters and achieve upfront 
certainty wherever possible.

Tax planning and incentives

Nexperia believes it should pay the tax amounts legally due in any territory. However, there will be 
some circumstances where this amount may not be clearly defined, or alternative approaches may 
result in differing tax outcomes. In these cases, we will use our best judgment to determine the 
appropriate course of action, using available reliefs and incentives where possible. These positions 
taken will be documented in a transparent manner and shared with local authorities where deemed 
appropriate.

Nexperia may engage in tax planning initiatives and use incentives and reliefs to minimize the tax 
costs of conducting its business activities, but will not use them for purposes that are knowingly 
contradictory to the intent of the legislation. However, Nexperia also believes that with such 
planning, due consideration needs to be given to Nexperia’s legitimate interests, reputation, brand,
and corporate social responsibility. The most important tax incentives for which Nexperia is eligible 
relate to the areas of innovation and R&D.

As a good corporate citizen, Nexperia does not enter into aggressive tax planning structures, use so called “tax havens” for tax avoidance, or create artificial tax structures with no commercial or 
operational substance.

Transparency

We are transparent in our approach to tax and our tax position. We make our disclosures in 
accordance with the relevant domestic regulations, as well as applicable reporting requirements and 
standards such as IFRS. We also strive to maintain an open dialogue on tax matters with
governments, policymakers, businesses, investors, and civil society.

Accountability and governance

A responsible tax approach is essential to the sustainability of our business. Therefore, we employ
diligent professional care and judgment to assess tax risks and arrive at well-reasoned conclusions on 
how they should be managed. Where there is uncertainty around the application or interpretation of 
tax law, we may take appropriate written advice evidencing the facts, risks, and conclusions from 
third-party advisers to support our decision-making process. 

Nexperia uses a tax risk management framework to identify, mitigate, manage, and report tax risks 
globally. We maintain policies and procedures at the global and local levels for key tax processes,
including compliance, transfer pricing, and risk management. This tax approach should ensure that 
we apply professional diligence and care in managing all risks associated with tax matters and
appropriate governance and assurance procedures.