CP ALL Public Company Limited and all subsidiaries recognized that “tax” is critical to sustainable development. It not only promotes and supports competitiveness of the business but also helps make socio-economic impacts as well as national development as a whole.
The Company is committed to tax management based on the principles of accuracy, transparency, and accountability for the highest benefits of the Company and all stakeholders. The practices of tax planning and implementation are in a consistent alignment within the Group.
The Group is managed and operates principally (more than 98%) in Thailand. There are no material revenues derived from, or assets located in, foreign countries.
- With regards to taxation, the Company strictly complies with the revenue code and tax laws, both in the spirit and letter of the law, that are related to the Company’s business operations with laws and regulations. The Company has tax consultants which comprises personnel with an expertise in supervising over strict compliance with laws and regulations.
- The Company has a Tax Accounting Department. It is responsible for following up with the government policy or initiatives that would lead to law enactment. Study the criteria for tax measures and tax privileges so as to keep abreast of the potential impacts to the Company. And notify the responsible person on the matters that would have impacts on the Company in order to prepare the Company for complying with the new law.
- The Company does not have a policy to shift its profits to overseas subsidiaries where there is a low tax regime to avoid paying higher taxes in its home country.
- Transfer pricing for any intercompany transactions is based on the Arm’s Length Principle, which is in compliance with the Thailand Revenue Code and any related tax laws.
- The Company will not use tax structures without commercial substance or misuse the tax structure in way that would encourage tax avoidance. The company does not use tax haven for tax avoidance purpose.
- The tax policy must be approved by the board of directors before being implemented.
Tax Reported 2020
|Applicable tax rate (%)|
|Consolidated financial statements|
|Applicable tax rate (%)||0%||20%||Other||Total Tax Contribution|
|(in million Baht)|
|Accounting profit (loss) before income tax expense||(138)||20,268||(865)||19,262|
|Income tax at the applicable tax rates||–||4,054||–||4,054|
|Tax effect of income and expenses that are not taxble income or not deductible in determining taxable profix||–||(1,250)||(2)||(1,252)|
|Over provided in prior years||–||(42)||(1)||(43)|
|Effective Tax Rate||–||–||–||14.35%|
In 2020, Earning before Tax was 19,262 million Baht and Reported taxes was 2,759 million Baht as effective tax rate 14.32%, which is different with effective tax rate of 20% based on Revenue Code Amendment Act No.42 B.E. 2559 dated at 3 March 2016 By the Industrial Investment Promotion Act B.E. 2520, a local subsidiary has been granted privileges on an exemption from payment of corporate income tax on net profit of the promoted business.
The Company has been obtained privilege on an investment promoted policy in Thailand by Governance, which motivate increasing investment by Private Sector and economic expansion in Thailand.
Tax Privileges 2020
|Tax Privileges has been applied in 2020 as follols:|
|Tax exemption granted by Thailand Board of Investment (BOI) 0%||0.08%|
|Training fee (promote the development of employee skills), Applicable to the Royal Decree no. 437||1.40%|
|The acquisition of new capital expenditure during 2016-2017, Applicable to the Royal Decree no. 604,622,642||1.66%|
|The public donations, Applicable to the Royal Decree no. 663,681||0.38%|
|Researching and developing technology and innovation (R&D) expenditures, Applicable to the Royal Decree no. 598||0.01%|
|The acquisition of machine of Royal Decree no. 690,695||1.10%|
|Investment in the eletronics tax system no. 693||0.01%|
|Interest payment on perpetual subordinated bond||1.04%|
|Total of tax privileges||5.68%|
Related Policy and Guideline