Tax Governance
In response to the international trend of tax governance, BenQ Materials uphold the concept of business ethics & integrity, implement tax laws and regulations, pursue sustainable development, formulate tax governance principles, and responsible units are responsible for implementing and reporting to the management to ensure the effective operation of the tax management mechanism to protect the Company. and investor interests.
In 2025, the income tax expense amounted to NT$25 million, representing 0.14% 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.
Tax Risk Management
BenQ Materials conducts operations and business expansion in overseas markets while complying with tax regulations across jurisdictions. To effectively manage tax risks, tax risk management has been incorporated into the Company's overall risk management program. The risk management organization regularly reports to the Audit Committee on the risk environment, key risk areas, risk assessments, and mitigation measures. For more details on risk management, please refer to Risk Management.
Tax Payment Status
Income Tax Related Information |
2024 |
2025 |
|---|---|---|
|
Profit Before Tax |
227,508 |
-318,735 |
|
Income Tax Expense |
28,302 |
25,293 |
|
Effective Tax Rate on the Books |
12.4% |
-7.9% |
|
Payment of Income Tax |
0 |
41,178 |
|
Effective Cash Tax Rate |
0% |
-12.9% |
- Note 1: Disclosure in 2024 was mainly based on Taiwan; in 2025, disclosure is based on the consolidated financial statements, including overseas subsidiaries.
- Note 2: Book effective tax rate = current year income tax expense ÷ current year profit or loss before tax; Cash effective tax rate = current year paid income tax ÷ current year profit before tax.
