UK TAX STRATEGY

The Company regards the publication of this information as compliant with its duty under Schedule 19 of the Finance Act 2016 to publish a tax strategy, and it applies to the financial year ending 31 December 2023.

Business Overview

TP-Link, a global multinational group in consumer networking, consumer electronics, enterprise networking, enterprise security, software, and cloud services, operates with dual headquarters in Singapore and the US to bolster its worldwide operations.

TP-Link is dedicated to delivering reliable, high-performance, convenient products and services to users in over 170 countries and regions. Embracing professionalism, innovation, excellence, and simplicity, we aim to assist our clients in achieving remarkable global performance and enable consumers to enjoy the wonders of technology.

TP-Link UK Limited (“The Company”), as a subsidiary of TP-Link group, operates as the primary distributor and support centre for TP-Link's range of products in the UK and Ireland. It offers a wide array of devices including wireless routers, range extenders, network switches, smart home solutions, and business network solutions etc. The Company understands the importance of managing its tax strategy effectively while maintaining positive relationships with local tax authorities and mitigating potential risks.

Governance and Risk Management

The Company's tax strategy is built on a foundation of compliance, ethical tax planning, long-term efficiency, and transparency. Its governance framework ensures that tax risks are effectively managed, and that tax strategies are aligned with its business goals and broader ethical standards. The Company is committed to maintaining a responsible and transparent tax position, fostering strong relationships with tax authorities, and minimizing tax risks through effective internal controls and governance practices.

By balancing tax optimization with compliance and corporate responsibility, the Company demonstrates its commitment to upholding strong governance and ethical standards across its global operations.

The Company ensures that it complies with tax laws in all countries in which it operates. This includes paying the appropriate taxes, filing tax returns on time, and adhering to local regulations such as corporation tax, VAT, and other specific tax regimes.

The Company's finance team, both at the UK level and within the Group Finance team, is responsible for overseeing all tax-related matters. This ensures that the tax strategies are consistently aligned with the Company's business objectives and ethical standards. The leadership team, including senior executives, actively monitors the effectiveness of the tax strategy and governance framework.

The Company undergoes external audits to ensure that its tax filings are accurate and in compliance with local tax laws. These audits provide independent verification of its tax compliance. Additionally, the Company is dedicated to maintaining strong tax compliance and transparency across its operations. Through partnership with external tax advisors, the Company ensures its tax positions are strategically optimized, well-supported, and in full compliance with all relevant regulations. This collaboration plays a crucial role in mitigating potential tax risks and reinforcing the Company's commitment to responsible financial management.

By balancing tax optimization with corporate responsibility, the Company demonstrates a strong commitment to upholding governance and ethical standards across its global operations. Its tax strategy is designed to minimize tax risks, ensure compliance with local and international tax laws, and maintain transparency in its dealings with tax authorities. The Company will continue to focus on responsible tax practices while striving for long-term business success.

Tax planning

In structuring its business activities, the Company recognizes its responsibility to pay the correct amount of UK tax. It does not engage in contrived or artificial transactions, nor does it pursue transactions lacking genuine commercial or economic substance. The Company acknowledges that, in some instances, the complexity of the relevant legislation may create uncertainty regarding certain transactions. In such cases, it adopts a prudent approach, seeking guidance from external advisors to clarify the application of tax law where necessary.

Level of tax risk

The Company is prepared to accept a certain level of tax risk, provided it aligns with commercial goals and the potential outcomes are fully understood and appropriately managed. The Company does not accept any tax risks that could lead to non-compliance with UK tax laws or negatively impact its reputation or business operations. It seeks to avoid high-risk tax positions, particularly those that are unclear or could attract scrutiny from tax authorities such as HMRC. The Company ensures that all decisions are made within the bounds of legal and regulatory requirements, maintaining a focus on long-term sustainability and legal compliance. Through careful management and ongoing review, the Company aims to balance the need for innovation and growth with the assurance that any tax risks undertaken are well-managed and compliant with relevant tax legislation.

Relationship with HMRC

The Company maintains ongoing and transparent interactions with HMRC, which are fundamental to ensuring compliance with all statutory and legislative tax obligations. The Company is fully committed to adhering to UK tax laws and takes a proactive approach to identify and address emerging tax issues or uncertainties before they develop into significant concerns.

In line with this commitment, we strive to collaborate with HMRC in real time wherever possible. This allows us to address tax matters as they arise and ensure that any necessary corrections or adjustments are made promptly. We are dedicated to maintaining transparency with HMRC regarding both current and future tax risks across all relevant taxes and duties.

Where there is uncertainty regarding the interpretation or application of tax law, we proactively engage with HMRC and consult with external advisors to seek clarification and mitigate any potential risks. This approach helps to ensure that our tax practices remain in full compliance with UK tax regulations and minimizes the likelihood of any disputes or compliance issues.