Orion's tax policy

Approach to tax

The purpose of Orion’s Tax Policy is to describe Orion Group’s (“Orion”) approach to taxes and to ensure compliance with the tax legislation in all the territories in which Orion Operates. Orion’s taxes are managed to meet the high standards of good corporate citizen. Taxes are paid in correct amount and at the right time in accordance with the global and local legislation applicable to the countries Orion operates. 

Orion’s global tax approach follows OECD’s global transfer pricing guidelines and tax rules. Orion’s transfer pricing and tax position follows Orion’s presence, functions, risks, assets, and value creation in the jurisdictions Orion operates. 

Orion’s transfer pricing and tax position follow Orion’s business operations. Orion does not engage in artificial transactions without business substance. Orion’s business decisions consider the overall commercial considerations and are not based on artificial structures driven by tax optimisation. Orion does not seek abusive tax results or tax evasion.

Orion’s tax management considers Orion's responsibility as corporate citizen and protects the shareholder value and aims to increase the total value of Orion Group.  Orion aims to stable and predictable consolidated effective tax rate and tax cost.

Orion manages tax risks by following the global principles, operating in high level compliance and documentation of taxes and with clear and open relationship with the respective tax authorities. 

Orion acknowledges that tax consequences are based on the business operations. Orion’s tax risk governance follows the business development and decision making and contributes by providing information about the potential tax risks.  Identified tax risk areas monitored continuously together with the relevant stakeholders.

Tax governance

Orion’s tax policy, including tax strategy as approach to taxes is approved by Orion Group President and CEO and reviewed by Audit Committee of the Board of Directors. Orion’s Chief Financial Officer and Director Group Finance and Controlling are accountable for tax governance and tax policies. Orion’s tax policy is published in the Group’s website. 

Orion’s Group Tax Function, centrally led by the Head of Corporate Tax, is responsible for implementing Policy, tax strategy and principles. Orion’s Group Tax Function ensures that Tax Policy is followed, maintained, and implemented in all countries Orion operates. Orion Group’s Tax Function is accountable for the overall management of tax matters and managing the tax risks. Orion’s guidelines and instructions, such as transfer pricing policy and guidelines are established by Orion Tax Function and approved by Group CFO. 

Tax compliance

Orion’s Group Tax Function manages the overall Group tax position, including the consolidated effective tax rate, integrated processes for global tax reporting requirements and sufficient expertise in the local tax matters. Orion’s Group Tax Function sets the operative guidelines for the management of tax topics in Orion. 

Daily tax compliance is managed by Orion’s Tax Function. Orion follows current global and local reporting laws and rules and follows closely the increasing reporting requirements to meet the standards and set sufficient internal processes for tax compliance. 

Orion has established internal accounting policies for tax accounting and compliance. Orion organizes internal trainings for tax compliance in regular basis, to maintain the high level of competence in all stakeholders engaged to tax compliance. Orion has implemented control points to tax reporting, to ensure the correct accounting and tax treatment at bottom up -basis.

In local level Orion pays taxes and files tax returns in a timely and correct manner. In Orion’s foreign jurisdictions Orion proactively prepares all relevant documents to support Orion subsidiaries’ transfer pricing and tax position. External advisors are utilized in the complex and uncertain areas of Orion’s tax management. 

Relationship with tax authorities

Orion’s headquarter and the jurisdiction of the ultimate parent company are in Finland. Orion is within the increased cooperation program with the Finnish tax authorities. Orion openly communicates significant tax related questions to the Finnish tax authorities. In local subsidiaries’ jurisdictions, Orion establishes the relationship with the local tax authorities in accordance with the local practice.  

Tax contribution 

Orion is committed to paying all legally due taxes and meeting all disclosure requirements in the countries where Orion operates or is exposed to taxes. Orion has paid the taxes due on our good and stable financial results regularly and on time. In addition to corporate income taxes and other direct taxes, Orion Group contributes to society through indirect tax payments and collecting and remitting various taxes on the payments made to the employees and shareholders. In 2023, our tax contribution amounted to EUR 240.5 million as specified below. 

¹Taxes borne comprise accrued corporate income taxes, real estate taxes, employer’s charges, customs duties and energy and excise taxes

²Taxes collected comprise value added taxes remitted, taxes withheld on payroll, pension payments, social security payments and taxes withheld on dividends and withholding taxes on royalties and dividends.