Taxes

As part of Metsä Group, Metsä Board follows the Metsä Group's common Tax policy. Metsä Board cooperates openly and actively with the tax authorities in the countries where it operates. In Finland, Metsä Board has an enhanced cooperation with the Finnish Tax Administration.

Metsä Board is responsible to its owners to manage its business in a cost-effective manner, including taxes arising from its operations. Metsä Board understands the importance of taxes as part of its economic and social responsibility in all countries where it operates. The Company manages its tax costs by active tax risk management and diligent tax compliance. Metsä Board does not reduce its tax costs through artificial arrangements.

Metsä Board's business models and legal structures must always be based on business reasons and real substance. Metsä Board locates operations into low-tax countries only if there are operational reasons for such location. If the Company has a possibility to choose within applicable laws an alternative for a transaction or structure which causes lower tax cost, it retains freedom to do so. If Metsä Board is being offered e.g. investment related tax incentives in its operating countries, such that are in line with its operative goals and real substance, the Company retains freedom to use them.

Metsä Board follows arm’s length principle when setting conditions for the Group internal transactions. Allocation of taxable income is based on the value-add generated in each Group company. Metsä Board reports information on taxes and non-tax payments due to Group companies in its tax footprint on annual basis.

Metsä Board complies with international transfer pricing guidelines and local tax laws in all its operating countries. Most of Metsä Board's management, production and other operations are located in Finland, so most of the company's income taxes are also paid in Finland.

Metsä Board reports its tax costs accurately as part of its financial reporting. The Company also reports annually the distribution of tax costs among its major operating countries.

Metsä Board's tax review, including the tax payment situation, tax audits, tax risks and their management and other significant tax-related matters are regularly discussed by Metsä Board's Management Team and the Audit Committee of Board of Directors.

Metsä Fibre’s share of result

Metsä Board’s consolidated result includes associated company Metsä Fibre’s result share (24.9% ownership). Metsä Fibre pays corporate income taxes on its own results and Metsä Board consolidates the result share on post-tax basis.

Paid taxes by major operating countries