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.
WT commits to reducing its tax burden through transparent tax arrangements, ensuring that the Group’s tax strategy aligns with international anti-tax avoidance principles and corporate social responsibility. By implementing lawful and compliant tax planning, WT upholds tax transparency and maintains strong cooperative relationships with local tax authorities to jointly foster a fair and competitive business environment.
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.
WT Tax Policies 



01
 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. 



02
Information transparency
We disclose tax-related information in compliance with financial reporting standards.



03
Reasonable tax saving
We use legal tax incentives and do not engage in tax planning for the purpose of avoiding tax liabilities.



04
 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.



05
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. 



 
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 decrease in the cash effective tax rate in 2024 is mainly due to the timing difference in income tax payments and a significant 128% increase in profit before tax compared to 2023.
 
2024 income tax payment by region 




   


 
Taiwan 39%


 
Others (excluding Taiwan) 61%







 
2022
2023
2024


Net profit before tax (A)
9,911
5,195
11,835


Income tax expense (B)
2,311
1,217
2,629


Income tax paid (C)
2,376
1,589
712


Book effective tax rate (D)=(B)÷(A)
23.32%
23.43%
22.21%


Cash effective tax rate (E)=(C)÷(A)
23.97%
30.59%
6.02%


(in NTD million)