Tax Strategy for the year ending 31 December 2024

Introduction

This tax strategy has been published by Hisense UK Limited for the financial year ending 31st Dec 2024. It complies with UK legislative requirements under Paragraph 16(2) of Schedule 19 of Finance Act 2016 and was approved by the Hisense UK Limited Board of Directors for publication on the Hisense UK Limited website.

ABOUT THE BUSINESS

The Hisense Group (“the Group”) is a world leader of flat panel TVs, household appliances and mobile communication devices and is recognised as a global top 10 player by the business intelligence industry and research institutions.

Hisense UK Limited (“Hisense UK”) is a company incorporated in the United Kingdom in 2012. The Group has a straightforward structure in the UK, with Hisense UK being the only entity in the UK. The purpose of the Company was to operate as a product distributor.

TAX STRATEGY AND SCOPE

The group recognise its responsibility to deliver value to shareholders, as well as paying taxes arising from its business activities which contribute to the societies where it operates. Hisense UK’s tax strategy requires that all tax obligations are complied with in the UK. In addition, the Company aims to align the tax payment outcomes with the commercial reality and where profits are generated.

Our tax strategy is built on the principles of transparency, fairness, and compliance. We seek to optimise our tax position within the framework of applicable tax laws while maintaining a responsible and sustainable approach to taxation. This tax strategy applies to Corporation Tax, Customs Duties, Employment Tax, Indirect Taxes, and any other tax liabilities for which Hisense UK has legal obligations. We ensure compliance with all relevant regulations and adhere to the guiding principles set forth by tax authorities in managing our tax affairs.

TAX DECISION MAKING PROCESS AND INTERNAL GOVERNANCE

Hisense UK is responsible for ensuring tax compliance within the UK. In terms of the internal approval procedure, the Company holds the decision-making power for localised tax related matters and report to the Group. With the constantly changing tax environment, Hisense UK has an emphasis on compliance and aims to keep up to date with the relevant knowledge and skills to identify, assess, manage and mitigate tax risk in order to be compliant in the UK. The UK finance team oversees the day-to-day management and implementation of Hisense UK’s tax affairs. 

Compliance matters are handled both internally and with the support of external professional service firms to perform periodic tax reviews to ensure compliance and maintain accuracy. Additionally, The Company has also appointed a Senior Accounting Officer who conducts regular monitoring and reviews, proposing improvements where necessary.

ATTITUDE TO TAX PLANNING AND MANAGEMENT

The Company does not engage in any group-wide tax planning schemes and prioritises tax compliance over tax planning.

Hisense UK aims to:

- Ensuring full compliance with all legal requirements by submitting accurate tax returns and making timely tax payments;

- Considering the Group’s reputation, brand integrity, and corporate social responsibility in terms of tax;

- Collaborating with HMRC and other relevant tax authorities to ensure full compliance with local tax regulations;

- Staying informed about tax developments with the support of external advisors to adapt to any regulatory changes effectively.

TAX RISK APPETITE AND KEY RISKS

Hisense UK has a low tolerance for tax risk and is committed to maintaining an effective tax governance framework. The key tax risks for the Hisense Group and Hisense UK are:

Reputational risk

Hisense UK’s tax strategy seeks to balance the needs of key stakeholders, who expect a minimisation of tax risk. To align with this expectation, the Hisense UK’s tax governance framework is designed to manage reputational impact and uphold its commitment to a low-risk approach.

Compliance and reporting risk

Non-compliance with the relevant tax rules in jurisdictions where the Hisense Group operates is a key risk and the group has a strong focus on the local compliance in each jurisdiction. In the UK, the Company actively manages this risk by ensuring its internal staff are equipped with the essential knowledge and skills to carry out the relevant work and obtaining external assistance from professional firms.

Changes in tax legislation and other regulations

Hisense UK closely monitors legislative and regulatory developments, particularly those impacting tax treatment. We proactively assess the potential tax implications of new regulations by staying updated with official publications, engaging with external professional bodies, attending relevant industry seminars, and maintaining ongoing discussions with tax experts.

WORKING WITH HMRC AND OTHER TAX AUTHORITIES

Hisense UK aims to have a transparent and cooperative relationship with HMRC and other tax authorities.

In the UK, the Company does not have a CRM with HMRC. However, the Company has regular correspondence with HMRC. In addition, it engages with external professional expertise to ensure compliance and accuracy. The Company is committed to prompt disclosure and transparency in all tax matters with HMRC and recognise that there will be areas of different legal interpretations between the Company and HMRC. In such situations, the Company will engage with HMRC in a proactive manner to achieve an early resolution.