Tax Policy

Control of risk

The first step towards sound growth and sustainable operation

Tax is the basis for governments to provide local infrastructure and public services, and is an important source of funding to advance global sustainable development goals. In response to changes in global tax environment, increasingly complex cross- border transactions and global anti-avoidance trends, we continue to interact and cooperate with tax authorities in countries where we operate.

Under the trend of international tax equity, WT implements corporate governance and establishes a corporate tax culture through the formulation of tax governance policies and transfer pricing policies, while taking into account the overall development of operations and the creation of operating profits. We review our policies annually in accordance with international tax trends and evaluate the need for revisions. We file honestly in accordance with the regulations of each location where we operate, and make proper use of relevant government tax incentive policies.

Tax irregularities or unethical matters can be reported internally and externally through WT’s established reporting mechanism. Tax information is disclosed in relevant public channels, such as annual reports of the shareholders’ meeting. Such information is derived from financial statements certified by the accounting firm.

The effective income tax rate of 22.8% in 2021 is higher than the statutory income tax rate of 20% for profit-making businesses in the ROC. This is mainly due to the fact that the board has considered the working capital required for the future growth of the Group’s operations and retained a portion of the current year’s earnings before distribution, which is subject to the tax on undistributed earnings.

Control of risk The first step towards sound growth and sustainable operation

For the purpose of enforcing the Company’s risk management mechanisms and strengthening corporate governance while reasonably assuring the Company’s strategies, plans, and targets are achieved, the Board of Directors passed the risk management policy on January 5, 2021. The policy provides the top principles for risk management. The policy covers the purpose of management, the scope of risks, organizational structure and responsibilities, management procedures, risk categories, and risk management operations and implementation evaluation. Risks arising from the business activities are kept within the range of tolerance in order to achieve sustainability and stability.

The Risk Management Committee is responsible for risk assessment

The Risk Management Committee of WT Microelectronics is a functional committee under the Board of Directors.The risk management committee members is composed of three Independent Directors, Chairman of the Board and the Chief Financial Officer. Each Accountability Unit is responsible for the actual implementation of risk management, and the head of the accountability unit is responsible for analyzing, monitoring and reporting the risks faced by the business under its jurisdiction, and ensuring that the risk management mechanism and procedures can be effectively implemented.


Operational Mechanism for Sustainability Management

6 Step Protocol for Sustainability Issue Management WT voluntary enact sustainable policies and initiatives for environmental, social, corporate governance, and economic and trade compliance. Meanwhile, these sustainable policies and initiatives are all approved by the Board of Directors and published after the approval of the board’s chairman. In addition, the senior vice president Kerry Hsu was appointed as Chief Corporate Governance Officer by the Board of Directors in 2019 and established an “WT Microelectronics Sustainable

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Ethical Management

Transparency, anti-corruptionConvergence with the global corporate governance business philosophy In 2020, WT developed the Social Policy & Code of Conduct, UNCAC Anti-corruption Policy, and the SDGs Policy. These standards align with global corporate governance and anti-corruption concepts and frameworks, including Responsible Business Alliance Code of Conduct, the UN Global Compact, the International Labour Standards, the OECD Guidelines for Multinational Corporations, etc. WT has always believed that a social policy and code of conduct are core

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Operations Profile

Strong revenue streams Selected as one of the top 500 high-growth companies in Asia Pacific by 2021 Established in 1993, WT Microelectronics is a leading professional service provider focusing on the global semiconductor distribution industry. By providing superior supply chain management services to both vendors and customers, WT has successfully positioned itself as a pivotal liaison, bridging upstream and downstream partners. Aiming to co-define the product marketing strategy with upstream vendors as well as to

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Inclusive Workplace

We value communication and incentive To develop mutual trust and respect between the employer and employees in the workplace WT values the welfare and rights of its employees and actively promotes harmonious relations between employers and employees. Work rules and various management regulations have been formulated in accordance with the Labor Standards Act and relevant laws and regulations, and Sustainable Development Best Practice Principles has also been formulated to specifically regulate the rights and obligations

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