tax management
Tax Management
In compliance with all related tax regulations, we optimize all benefits and exemption allowances to the benefit of our stakeholders
Management approach
As tax laws and regulations are updated or amended to help promote economic activities, we are made aware of these changes and the benefits they pose for our group to plan for potential investment opportunities, employee benefits, and financial sustainability. We ensure that our accounting policies and systems are up to date and in full compliance with the governing laws by way of regular communication with the Revenue Department, Financial Consultants, and External Auditors.
Policy : Tax Policy
Stakeholders :
Investors, Regulators, Board of Directors, and Employees
Short-term goals :
- Compliance with tax laws and regulations, and conduct risk assessments
- Organize knowledge sharing session for employees on tax regulations and update tax manual
Long-term goal :
- Fully digitize the tax management system
Key Performances :
- Tax management system fully digitized
- Communicated Corporate Tax Policy to all employees of the Group
Responsible Tax Practice at Tipco Asphalt Group
The corporate income tax rate for the Group, a group of companies, is in the range of 17% – 25%. The corporate income tax rate in Thailand is 20%. In the year 2022, the Group had a corporate income tax rate of 23% based on the consolidated financial statements and 16% based on the specific business financial statements.
| ITEM | 2020 | 2021 | 2022 | |||
| Consolidated Financial Statement |
Separate Financial Statement |
Consolidated Financial Statement |
Separate Financial Statement |
Consolidated Financial Statement |
Separate Financial Statement |
|
| Sales & Service Income | 22,943.39 | 22,943.39 | 24,447.11 | 21,429.75 | 30,024.76 | 25,944.95 |
| Constuction Income Tax | - | - | 2,605.66 | - | 3,375.78 | 4,354.84 |
| Profit Before Income Tax | 4,354.84 | 3,025.87 | 3,005.37 | 1,869.15 | 3,120.26 | 3,306.55 |
| 20% Corporate income Tax rate (Thailand) |
(870.97) | (605.17) | (601.07) | (373.83) | (624.05) | (661.31) |
| Corporate Income Tax | (786.31) | (556.18) | (419.38) | (260.05) | (727.68) | (531.75) |
| Corporate Income Tax Rate | 18% | 18% | 14% | 14% | 23% | 16% |
Consolidated Financial Statement
Separate Financial Statement
Explanation for Differences in Corporate Income Tax and Effective Tax Rates
The Group has implemented tax procedures to ensure compliance with relevant laws. In 2022, the corporate income tax rate for the Group was 23%, falling within the range of 17% to 25% applicable to the Group. This variation in tax rates is due to the Group receiving tax privileges in various sectors. However, it’s important to note that not all expenses incurred can be classified as tax expenses, primarily stemming from differences in accounting methods compared to those used for taxation purposes.
The difference between the corporate income tax rate in Thailand (20%) and the effective tax rate is illustrated as follows:
Tax Benefits | Amount (Thousand Baht) |
|---|---|
Tax benefits from investments under the BOI ¹/ | 6,579 |
Tax Benefits Tax privileges for ocean freight business ²/ | 20,280 |
Investment Promotion Act International Business Center (IBC) ³/ | 2,822 |
Non-taxable income/expenses | Amount (Thousand Baht) |
|---|---|
Share of profit from investment in joint ventures and associates | 13,985 |
Allowance for Impairment Losses | (39,988) |
Expected Credit Loss | (24,048) |
Tax-deductible depreciation expenses incurred in the past | (40,921) |
Other iterms | (42,340) |
Total benefits/tax exemption for the year 2022 | (103,631) |
Note :
¹/ Subsidiaries engaged in public transportation and bulk cargo transportation are granted promotional privileges by the Board of Investment. Significant tax benefits include exemption from corporate income tax for up to 8 years from the dates indicated below:
- Alpha Maritime Co., Ltd.: Start Date – 9 October 2014
- Bitumen Marine Co., Ltd.: Start Date – 29 October 2015
²/ Subsidiaries in Thailand engaged in the shipping and handling of vessels enjoy exemption from corporate income tax on their income from international marine transportation as per Notification No. 72 issued by the Director-General of the Revenue Department.
³/ The company receives tax privileges for operating as an international business center, providing administrative, technical, and support services, and being classified as an international trading company. This privilege entails the reduction of the corporate income tax rate for international business center activities over 15 accounting periods, from 1 June 2019 to 31 December 2033.