Tax Governance

BenQ Materials, in response to the international trend of tax governance, adheres to the principles of integrity and operates in compliance with tax regulations, striving for sustainable development. We have established tax governance principles and assigned responsibilities to relevant units for implementation, reporting to the management level. This ensures the effective functioning of our tax management mechanism, safeguarding the interests of the company and its investors. In 2022, the income tax expense amounted to NT$470 million, accounting for 3.03% of the total annual revenue.

Tax Governance Principle

• Tax strategies adhere to the tax regulations and the underlying principles of tax legislation in all operating jurisdictions.
• Transactions between related parties are conducted in accordance with the arm's length principle and comply with the internationally recognized transfer pricing guidelines published by the Organization for Economic Cooperation and Development （OECD）.
• Financial reporting information is transparent, and taxdisclosures are handled in accordance with relevant regulations and guidelines.
• Tax havens or tax planning practices are not utilized for the purpose of tax avoidance.
• Profits generated by the company are not transferred to low-tax jurisdictions.
• A relationship of mutual respect is established with tax authorities based on trust and information transparency.
• Tax implications are taken into consideration in significant company decisions.
• The operational environment is analyzed, and tax risk assessments are conducted using management mechanisms.