Tax Policy
In response to global trends of tax governance, Chia Hsin Cement Corporation and its subsidiaries comply with tax regulations to promote corporate sustainability, manage risk, enhance shareholder value, and fulfill social responsibility. To achieve these objectives, Chia Hsin Cement Corporation has established a tax policy and governance guideline in 2023. The policy stipulates that the board of directors is the highest decision making and supervision unit, while designating the financial department as the tax management unit. Furthermore, both Chia Hsin Cement Corporation and its subsidiaries shall implement a hierarchical responsibility system and obtain appropriate approvals. Depending on the significance of the issue, the financial department shall irregularly report to the board.
The Company and each subsidiary commit to be an honest taxpayer and comply with the following tax policies:
▶ Compliance with Laws
Fully understand and comply with tax laws established by domestic and local governments and their underlying purposes. Being a taxpayer, to accurately calculate and file tax returns.
▶ Related Party Transactions
Comply with tax laws established by domestic and local governments, as well as adherence to the transfer pricing standards established by OECD to ensure that the transactions between related parties adhere to regular policy and transfer pricing standards.
▶ Reasonable Structure
The corporate structure is established to align with substantive operation activities and legitimate business purpose, rather than practicing tax avoidance as the primary purpose of transactions.
▶ Information Transparency
Tax disclosures shall be handled in accordance with relevant regulations and guidelines. Related policy shall be disclosed through public channels to ensure information transparency.
▶ Integrity Communication
Establishing mutual trust and maintaining integrity communication with tax authorities. Maintain a positive relationship while engaging in timely communication and clarification of tax issue.
▶ Risk Assessment
Major transactions and decisions are in compliance with relevant laws, and tax related risks and impacts are evaluated prudently.
▶ Talent Cultivation
Cultivate and improve the expertise of tax professionals to stay informed about changes in tax regulations, assess the impacts, and formulate responsive decisions timely.
Tax information in the most recent two years of CHC group
In Thousands of NTD
| Items | 2021 | 2022 |
| Profit(Loss) before tax | 819,520 | (121,302) |
| Income tax expenses | 71,985 | 52,584 |
| Effective tax rate(%) | 8.78% | -43.35% |
| Income tax paid | 73,691 | 39,706 |
| Cash tax rate(%) | 8.99% | -32.73% |
- Note : Please refer to Chia Hsin Cement Corporation 2022 Consolidated Financial Statements for related information.
