Tax Governance
BenQ Materials, in response to international trends in tax governance, upholds the principle of integrity in business operations and is committed to full compliance with tax regulations as part of its pursuit of sustainable development. The company has established tax governance principles, with responsible units assigned to implement the policy and report to management to ensure the effective operation of the tax management system, thereby protecting the rights and interests of the company and its investors.
In 2024, the income tax expense amounted to NT$28 million, representing 0.15% 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 operates and expands its business overseas while complying with the tax laws of various countries. To effectively manage tax risks, tax risk management has been incorporated into BenQ Materials' risk management plan. The risk management organization regularly reports to the Audit Committee on the company's risk environment, key points of risk management, risk assessment, and mitigation measures.
Tax Payment Status
2024 year
|
Income Tax Related Information |
2021 year |
2022 year |
2023 year |
2024 year |
|---|---|---|---|---|
|
Profit Before Tax |
1,198,417 |
1,481,351 |
470,695 |
227,508 |
|
Income Tax Expense |
226,862 |
185,681 |
56,343 |
28,302 |
|
Effective Tax Rate on the Books |
18.9% |
12.5% |
12% |
12.4% |
|
Payment of Income Tax |
123,510 |
102,005 |
27,767 |
0 |
|
Effective Cash Tax Rate |
10.3% |
6.9% |
5.9% |
0% |
- Note 1: Tax situations are primarily disclosed in Taiwan.
- Note 2: Book effective tax rate = current year income tax expense ÷ current year profit before tax; Cash effective tax rate = current year paid income tax ÷ current year profit before tax.
