Refined Tax Policy

Taxes are not only a cornerstone of national governments‭’ ‬provision of local infrastructure and public services‭, ‬but also an important source of funding to attain 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.‬

In the face of the upcoming Controlled Foreign Corporation‭ (‬CFC‭) ‬system‭, ‬WT has adjusted its organizational structure to comply‭ ‬with the international anti-avoidance trend for tax fairness‭, ‬reorganized its substantive operating affiliates registered in countries with low tax burdens‭, ‬and prudently assessed the impact of the taxation policy on the Group‭. ‬We also keep close watch on‭ ‬any revision of applicable laws and regulations‭.‬

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

WT’s Tax Policy’

Reasonable tax saving We use legal tax incentives and do not engage in tax planning for the purpose of avoiding tax liabilities.
Information transparency We disclose tax-related information in compliance with financial reporting standards.
Compliance with tax regulations We handle tax matters and file taxes in accordance with tax laws and regulations of each country in which we operate as well as international rules and standards (e.g., the arm's length principle, OECD regulations, etc.). We pay reasonable tax liabilities commensurate with economic value in the countries in which we operates in order to fulfill our social responsibility.
Established communication channels We established a mutually respectful and trustful communicative relationship with tax authorities with whom we can conduct timely clarification of possible tax issues for major transactions.
Managing tax risks Tax implications must be taken into considerations when key company decisions are made. Operating environment and transaction patterns must be analyzed, and established investment structures reviewed to determine their consistency with sustainable tax strategies and management policies, with a view to developing adjustments.

2021‭ ‬saw a profit growth and lower cash effective tax rate‭.‬

WT’s effective income tax rate and cash effective tax rate in 2022‭ ‬were 23.32%‭ ‬and 23.97%‭ ‬respectively‭, ‬which is higher than the‭ ‬statutory income tax rate of 20%‭ ‬for profit-seeking enterprises in the Republic of China‭. ‬It was mainly because the management‭ ‬retained part of the period’s annual surplus for working capital needed for the Group’s future business growth‭, ‬and we had to pay the undistributed surplus tax‭. ‬The effective cash tax rate was lower in 2021‭ ‬mainly due to the difference in the timing of income tax payment and the substantial increase in profit in 2021‭ ‬compared to 2020‭. ‬The profit-seeking enterprise income taxes paid‭ ‬in Taiwan and China‭ (‬including Hong Kong‭), ‬WT’s main places of operation‭, ‬accounted for 97%‭ ‬of the tax we paid in 2022‭.‬

Tax payment comparison 2021 and 2022(in NTD million)

Net profit before tax‭ (‬A‭)‬



Income tax expense‭ (‬B‭)‬



Income tax paid‭ (‬C‭)‬



Book effective tax rate‭ (‬D‭)=(‬B‭)‬‮!‬ز‭(‬A‭)‬



Cash effective tax rate‭ (‬E‭)=(‬C‭)‬‮!‬ز‭(‬A‭)‬



WT 2022 income tax payment by region




China (including Hong Kong)



Risk control and management is the first step towards sound growth and sustainable operation

For the purpose of enforcing the Company’s risk management mechanisms and strengthening corporate governance‭, ‬the Risk Management Committee was put in place in 2020‭. ‬In order to keep risks arising from operating activities within tolerance‭, ‬the risk management policies were passed on January 5‭, ‬2021‭ ‬by the Board as WT’s risk management guidelines‭, ‬which cover the purpose of management‭, ‬scope of risks‭, ‬organizational structure and responsibilities‭, ‬management procedures‭, ‬risk categories‭, ‬and evaluation of risk management operations and implementation‭. ‬

The Risk Management Committee was set up and designated for risk assessment

The Risk Management Committee is a committee of the Board of Directors and is composed of three Independent Directors‭, ‬the Chairman and the Chief Financial Officer‭. ‬One meeting at least is convened every year to report to the Board of Directors on the operation of risk management‭, ‬additional meetings may be convened at any time as needed‭. ‬Functional units are responsible for the implementation of risk analysis‭, ‬improvement and tracking activities‭.‬

A Risk Management Task Force of the Risk Management Committee is going to be set up in 2023‭, ‬with the General Manager as the convener‭, ‬and relevant heads of functional units assigned by the General Manager according to the risk items managed as team members‭. ‬The Risk Management Task Force will be the responsible unit for the implementation of risk management‭. ‬It is mainly responsible for the overall risk management‭, ‬including formulating risk management policies‭, ‬structures and mechanisms‭, ‬establishing qualitative and quantitative management standards‭, ‬and reporting the risk management implementation status and results to the Risk Management Committee‭.‬

WT's risk management organizational structure

Risk management organization

Board of Directors

The Board of Directors is the supervisor of risk management and the highest governance body‭. ‬With the goal of complying with laws and regulations‭, ‬promoting and implementing risk management‭, ‬it elevates risk management policies‭, ‬and continuously supervises‭ ‬the effective operation of the risk management mechanism‭, ‬and is responsible for the ultimate responsibility of the risk management system‭.‬

Risk Management Committee

Risk Management Committee reports to the Board of Directors directly‭, ‬and is responsible for reviewing the appropriateness of risk management policies and risk management structures‭, ‬reviewing major risk management strategies‭, ‬including risk appetite or tolerance‭, ‬reviewing management reports on major risk issues‭, ‬supervising improvement mechanisms‭, ‬and regularly reporting to the Board of Directors implementation of risk management‭.‬

Auditing Office

The Auditing Office is directly affiliated with the Board of Directors‭. ‬Its responsibilities are independent supervision and quality assurance‭, ‬internal control system revision and promotion‭, ‬and auditing business planning and execution‭. ‬It submits an annual audit plan based on the results of the risk assessment every year‭, ‬and reports the execution results to the audit committee and the Board of Directors‭.‬

Accountability Unit

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.‬

Risk types and identification

Risk category
Risk management process

Operational risks

Market structure and demand‭, ‬industry development and competition‭, ‬sales or procurement concentration‭, ‬product and raw material‭ ‬prices‭, ‬product development and services‭, ‬business model changes‭, ‬organizational structure adjustment‭, ‬talent recruitment‭, ‬public relations‭, ‬patent application and maintenance‭, ‬intellectual property protection‭, ‬etc‭.‬

Financial risks

Inflation‭, ‬financing‭, ‬liquidity management‭, ‬exchange rate‭, ‬interest rate hedging‭, ‬financial investment‭, ‬strategic investment‭, ‬etc‭.‬

Legal compliance risks

Failure to comply with laws and regulations or deficient contract specifications‭.‬

Information security risks

Failure to ensure information confidentiality‭, ‬integrity and availability as a result of potential exposure of the information assets to unbearable risks‭.‬

Environmental risks

Climate change‭, ‬natural disasters‭, ‬etc‭.‬

Emerging risks


Risk Management and Countermeasures

Financial risk management is important for WT’s operations‭. ‬For details of finance-related risk analysis and management policies‭, ‬please see the Annual Report 2022‭. ‬For details of information security-related and climate change-related risk analyses and management policies‭, ‬please see Sections 2-6‭ ‬and 4-2-1‭. ‬Other risks related to WT’s operations are as follows‭:‬

Change in government policies and legislation

Risk Factor

Our operation would be affected if there is a change in important industry policies or legislation made by government of a country where WT operates‭.‬

Current Impact on the Company

National governments tend to encourage the development of high-tech‭, ‬semiconductor‭, ‬and high-value-added logistics logistics industries‭, ‬especially Taiwan and China‭; ‬therefore‭, ‬at this stage‭, ‬there are no major changes in government policies and legislation.


WT’s legal‭, ‬accounting‭, ‬and stock affairs teams keep watch on and dutifully collect important information of market and legislative changes at home and abroad‭, ‬and timely consult legal and accounting experts to propose measures in response to major changes‭ ‬in domestic and foreign policies and legislation‭.‬

Change in technologies

Risk Factor

A change in technologies or the industry will lead to changes in our production and sales and pose risks to our operations as WT‭’‬s product portfolio is mostly comprised of high-tech products‭.‬

Current Impact on the Company

There are no change in technologies or the industry that have an impact on the company’s finance or business‭.‬


WT’s R&D and sales teams keep watch on potential impact of change in technologies or the industry on the Company‭. ‬In addition‭, ‬the R&D team further develops high-value-added and high-profit products to secure our source of profit with a more diverse and high-end portfolio‭.‬

Concentration of purchases or sales

Risk Factor

There would be a risk of major impact on the sales performance when the purchases or sales are concentrated and a major agency right or customer is lost‭. ‬

Current Impact on the Company

In 2020‭, ‬WT lost the agency right of a supplier who made the biggest contribution to our revenue‭, ‬and managed subsequently to make up for the lost performance by deepening partnership with other suppliers‭. ‬At present‭, ‬WT has a relatively extensive pool of‭ ‬more than 10,000‭ ‬customers and there is thus no problem of excessively concentrated purchases and sales‭.‬


WT is a professional distributor of semiconductor components‭. ‬Most of our suppliers and customers are well-known domestic and foreign companies‭. ‬WT not only maintains good relations with existing customers and suppliers‭, ‬but also strives to expand customers and suppliers by actively seeking new customers and developing new agency product lines‭.‬

Emerging risks

Risk Factor

The impact of the COVID-19‭ ‬pandemic on the supply chain of IT products may accelerate the trend of supply chain transfer and decentralization‭, ‬and pose downside risks to global economic growth in the long run‭.‬

Current Impact on the Company

The COVID-19‭ ‬epidemic has accelerated global digitalization and increased the demand for high-tech products‭; ‬there is no negative impact on our finance and business‭, ‬as WT has established a cross-regional operation setup‭, ‬which is sufficient to cope with the supply chain transfer and decentralization‭.‬


WT will continue to pay close attention to changes in the general environment, adapt our organization and business with flexibility, and provide robust working capital to cope with changes.


Inclusive Workplace

A work environment of mutual trust and respect between employers and employees is created through communication and trust. WT values the welfare and rights of its employees and actively promotes harmonious relations between management and labors‭. ‬Work‭ ‬rules and various management regulations have been formulated in accordance with the Labor

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Letter from the CEO

Sustainability makes us see ourselves better. ESG is a game changer that has been drawing global attention.Indeed, the sustainability of the Earth determines the sustainability of an enterprise, and the pursuit of sustainability is meant to be part of our everyday practice. The implementation, advocating and learning of sustainability start

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Talent Development

Complete career planning is offered with a blueprint for sustainable development of talents. An enterprise’s development stems from its belief in talent cultivation‭. ‬WT group values the comprehensive development of employees and creates a work environment suitable for the right people‭. ‬In a fast-changing environment‭, ‬in order to equip the

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Employee Relations

Employees are brought closer with diversified community activities. WT has seven major clubs‭. ‬They offer exclusive courses and activities for their members‭, ‬as well as a wide range of activities with different themes‭, ‬large and small‭, ‬for all employees to join‭. ‬A variety of public interest activities are organized to

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