Control of riskThe 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.