UK Tax Strategy
Published in March 2023
Main businesses of Komatsu group “Komatsu” consist of manufacture, sale and service of
construction, mining and utility equipment, forest machines and industrial machinery. Its
headquartered company is Komatsu Ltd. Listed on the Tokyo Stock Exchange. Komatsu activities in
the United Kingdom include manufacturing, distributing and servicing the above-mentioned
machinery in the construction, mining and forestry sectors.
This UK tax strategy statement (the “Strategy”) sets out our approach to UK taxation and applies to
all our entities, subgroups and permanent establishments in the UK, details of which are set out in
the Appendix to this document (collectively “we”, “our” or the “UK Entities”). Our publication is
regarded as complying with the obligation under Part 2 of Schedule 19 of Finance Act 2016 in
respect of the period ending 31 March 2023.
The Strategy is aligned with the “KOMATSU Way” which is a written description of the company’s
mind-set, values and beliefs. The KOMATSU Way is accompanied by Komatsu's Worldwide Code of
Business Conduct (the “Code”). Our commitment to complying with the Code is not limited to laws
and regulations but also those rules that are generally recognised and respected in society.
Tax governance and risk management
The Strategy is approved by the Boards or respective managements of all of the UK Entities and has
been developed with the support and oversight of the International Taxation Group of Corporate
Controlling Department in our head office in Tokyo.
The UK Entities are governed and managed independently of each other and have distinct Boards
and management teams. They vary in size and complexity and as such, and the tax governance and
risk management framework for each UK Entity is tailored accordingly. In all cases, however, there
are appropriate Board oversight and effective channels for the monitoring and escalation of tax
Our UK tax compliance obligations are delivered by a combination of in-house staff and professional
advisors. In the case of complex technical matters or areas that require international co-ordination
(such as transfer pricing), the UK Entities can also draw on specialist expertise of their respective
divisions internationally or the International Taxation Group of Corporate Controlling Department in
Tokyo. Staff training is tailored to meet the respective needs of the UK Entities and we maintain
close relationships with advisors to ensure that we are up to date with applicable changes in tax
Tax planning and risk appetite
We believe that our corporate value is represented by the total sum of trust society and our
stakeholders place in Komatsu. As such, we do not pursue aggressive tax strategies or artificial
planning arrangements that could undermine that trust. We seek to minimise tax risks and
prioritise compliance. Our intercompany transactions are made on an arm’s length basis in line
with OECD principles.
Our UK Entities seek to maintain a collaborative, transparent and honest relationship with
HMRC. In the rare cases where disagreements arise, we appropriately defend our positions which
we believe to be correct. However, we will also invest the time and effort required to help HMRC
better understand our business and the associated tax profile.
Appendix – List of UK Entities
Requirement to publish a tax strategy under Sch 19 (2) FA 2016:
- Joy Global (UK) Holding Co Limited and it’s UK subsidiaries
- JTI Acquisition Co (2011) Limited
- Komatsu Forest Limited
- KMG Warrington Branch of Komatsu Germany GmbH
- Komatsu UK Limited
- Komatsu UK Pension Trustees Limited