Tax Policy
Importance and Mission
The company is committed to conducting business with transparency and in accordance with the law, which includes complying with tax regulations. This is part of a broader mission to be a leader in clean energy and operate sustainably, with good corporate governance. The company's mission includes enabling people and businesses to develop a sustainable future. This suggests that the company aims to operate responsibly in all areas, including taxes.
SDGs in the Tax Policy
Goals and Performance Highlights
Goals
Pay taxes in compliance with laws across all operational areas
Performance Highlights 2024
(Unit : Million Baht)
| Reported Tax Rate and Cash Tax Rate | 2022 | 2023 | 2024 |
|---|---|---|---|
| Accounting profit before tax | 1,380.61 | 920.74 | 847.18 |
| Accounting profit before tax multiplied by income tax rate | 201.14 | 145.01 | 150.70 |
| Effective tax rate (%) | 15 | 16 | 18 |
| Income tax expenses (income) reported in profit or loss | 40.06 | 90.23 | 79.59 |
| Cash taxes paid | 49.45 | 64.25 | 72.23 |
| Cash tax rate | 3.6 | 7.0 | 8.5 |
**The difference between Reported tax rate and Cash tax rate was mainly caused by the following factors:
- Previously unrecognized tax losses that are used to reduce current tax expenses
- Promotional privileges
- Non-deductible expenses
- Additional expense deductions allowed
- Exempt income
- Tax losses for the year that deferred tax assets are not recognized and others
Management Approach
The company implements its tax policy based on principles of good governance and transparency. Regular internal audits are conducted to ensure that tax management complies with all relevant laws and regulations. Additionally, the company promotes understanding of tax-related matters among responsible employees through training and the provision of detailed information, thereby preventing errors and mitigating potential risks arising from non-compliance
01
Reported Tax Rate and Cash Tax Rate: The difference between the reported tax rate and the cash tax rate was mainly caused by factors such as previously unrecognized tax losses used to reduce current tax expenses, non-deductible expenses, exempt income, promotional privileges, additional expense deductions allowed, and tax losses for the year that deferred tax assets are not recognized.
02
Investment Promotional Privileges: Sermsang Power Corporation Public Company Limited has received investment promotion certificates under the Investment Promotion Act B.E. 2520 for the solar power generation business.
03
Subsidiaries' Tax Privileges: Subsidiaries have received tax privileges from the Board of Investment, with key benefits including corporate income tax exemption for profits from promoted businesses for 8 years, and Sermsang Palang Ngan Co., Ltd. and Winchai Co., Ltd. have received a 50% reduction in corporate income tax rates for promoted businesses for 5 years.
04
Extension of Tax Privileges: In 2024, Sermsang Solar Co., Ltd. and Uni Power Tech Co., Ltd. received the privilege to extend the tax privilege period from 8 years to 12 years.