Krungthai Card Public Company Limited and its subsidiaries (“Company”) formulate the tax policy under the principles of good corporate governance in order to ensure that their business operations can continue to grow in a stable and sustainable manner. With regard to tax practices, the Company adheres to the principles of accuracy, transparency, social responsibility and equitable treatment towards all stakeholder groups. As designated by the Board of Directors, it is incumbent upon the Audit, Environmental, Social and Governance Committee to dutifully perform various tasks set out in the Charter of the Audit, Environmental, Social and Governance Committee, and the Committee is thereby responsible for approving the tax policy.
The Company’s tax policy comprises three key components as follows:
1. Ethical tax practices
- Uphold and comply with pertinent laws, rules and regulations to ensure proper and suitable tax management.
- Fully exploit tax incentives within the legal framework for utmost benefits of stakeholders. These tax incentives may encompass tax exemption measures during a certain time period and other incentives.
- Take responsibility for ensuring proper payment of taxes that truly reflect economic transactions, and refrain from transferring created values to transactions of an enterprise that pays a lower tax rate. At present, the Company operates its entire operations in Thailand.
- Have no policy to exploit tax havens which may be used as a channel for capital and liquidity sourcing of the Company, and refrain from using an inappropriate tax structure that may lead to tax avoidance.
- Determine transfer pricing between related entities in accordance with the arm’s length principle, whereby the Company charges a normal price generally considered a market price or any price agreed in a contract in order to ensure that recognition of revenue and expenses used as a tax base complies with legal provisions.
2. Tax risk management
- Ensure efficient internal communication to foster understanding among employees, thereby ensuring that employees duly adhere to legal requirements and proper practices under tax law.
- Develop a tax practice manual and regularly update the information whenever changes occur.
- Establish tax preparation and payment processes that ensure correct and timely payment and a suitable form of systematic data collection.
- Arrange control of accounting information of all types of taxable items to ensure completeness, accuracy and reliability.
- Consult external tax advisors with expertise in complex taxation issues or issues that the Company lacks expertise in order to minimize potential tax risks and consequences and ensure that its practices adhere to legal requirements.
3. Tax transparency
- Publicly disclose the tax policy on the company website.
- Disclose taxation information as required by law. In this regard, the Company has disclosed such information in the financial statements in accordance with the financial reporting standards.
- Report taxation information to the Revenue Department and concerned authorities within the statutory time frame.
- Cooperate with officials of the Revenue Department and other government agencies when responding to their questions or preparing supporting information for tax audits in a complete and transparent manner, and appoint a person responsible for tax matters to liaise with the Revenue Department and concerned authorities and give correct information and consistent messages to the public sector.