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. To meet changes in global tax environment, increasing complexity in cross-border transactions and global anti-avoidance trends, WT continues to interact and cooperate with tax authorities in countries where it operates.
Facing the trend of international tax equity, WT implements corporate governance and shapes a corporate tax culture by formulating tax governance and transfer pricing policies, while taking into account the overall operational development and the creation of operating profits. The policies are reviewed annually to reflect international tax trends, and the need for revisions evaluated. WT files honestly in accordance with the regulations of each location where it operates, and make proper use of applicable government tax incentives.
In preparations for 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. It also keeps close watch on any legislative news.
Tax irregularities or unethical matters can be reported internally and externally through WT’s exiting whistleblower mechanism. All tax information disclosed in relevant public channels, such as annual reports at the shareholders’ meeting, is derived from financial statements certified by an accounting firm.
Tax payment situation
WT’s effective income tax rate and cash income tax rate are both higher than Taiwan’s statutory income tax rate of 20% for profit-making enterprises, mainly because the Company’s management retains part of the current year’s earnings
without distributing in consideration of the working capital required for the Group’s future operational growth, and is
required thus to pay tax for the undistributed earnings. The increase in the cash effective tax rate in 2023 is mainly due
to the difference in income tax payment time and the increase in profits in 2022 relative to 2021.
Integrity is WT’s most important core value and b
In order to ensure the confidentiality, integrity and a
WT’s consolidated net operating revenue was NT$59