Tax Strategy and Tax Policies
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 complies with the revenue code and tax laws that are related to the Company’s business operations
- 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 so as to keep abreast of the potential impacts to the Company. Tax Accounting Department will 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 provides ongoing training in tax law for its employees to enhance their knowledge so that they are able to apply it to work properly.
- The Company does not have policy to shift its profits to overseas subsidiaries where there is a low tax regime to avoid paying higher taxes in its home country.
- The Company seeks to make use of tax incentives according to national and local tax structure and may obtain tax exemption privileges at certain times based on country’s tax policies. All are in context of sound and sustainable business operations. Under effective business, sustainable and appropriate.
- The company is committed to conducting business with transparency. Transfer pricing is calculated using the arm’s-length principle for intra-group transactions within the normal course of commercial activity.
Income tax expense 2018
In 2018, profit before tax was 25,152 million Baht and corporate tax was 3,696 million Baht as effective tax rate 15.78%, 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.
Moreover, the company has been also granted privileges on an exemption from payment of corporate income tax for the training or employee development.