Tax Strategy

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IRPC Group strictly adheres to the principles of sustainable transparency and fairness.

When engaging with tax-related matters, these principles are embedded at all levels of our organization to ensure alignment in tax approaches among all IRPC Group companies and to promote good governance and accountability at all times. We are committed to conducting our business in full compliance with relevant rules, laws and regulations, aiming to build sustainable trust with stakeholders and societies where we operate.

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Tax Policies

The IRPC Group Tax Strategy and Tax Policy have been approved and endorsed by the Board of Directors. The Accounting Department has been designated to oversee the development and implementation of tax-related initiatives, ensuring compliance and effective management of tax matters.
In line with this commitment, our tax policies are built upon four pillars:

Tax Code of Conduct:

We strive to achieve sustainable and competitive company taxation and sustainable value and growth including good corporate tax citizenship with added value for society.

Manage the taxation for stakeholders’ benefits by paying tax properly as required by law.
Taxed where the economic activities generating the profits are performed.
Aware of direct and indirect risks from aggressive tax planning and do not use contrived or abnormal tax structures that are intended for tax avoidance and have no commercial substance.
Transactions between related parties are based on arm’s length principle to ensure that the fair share of taxes is paid with respect to our function performed and our business strategies.

Tax Alignment with Corporate Strategy and Business Goal:

IRPC pursues a tax strategy that is principled, transparent and sustainable in the long term and considers tax impact for investments and new transactions. Additionally, IRPC explores tax incentives/exemptions available for our commercial activities for the benefits of our stakeholders.

Tax Risk Management:

IRPC considers tax risks to ensure that they are identified, managed, and reported to the management. We ensure that our tax positions align with relevant laws. We also regularly review relevant laws to address emerging risks.

Tax Transparency:

We are committed to submitting all relevant tax information to governing authorities, enhancing transparency in our tax affairs, and fulfilling all statutory disclosure requirements regarding taxation.

Tax Reporting

To reinforce our commitment to transparency and corporate governance, IRPC discloses the taxes paid to Thailand—the only country in which we operate—below.

Reported tax rate and cash tax rate for the year 2024

Financial Reporting

FY 2022

FY 2023

FY 2024

Calculated Average Rate

Earnings before Tax (Loss)

(5,501,824,833)

(3,684,246,386)

(6,702,988,203)

Reported Taxes

-1,141,807,919

-771,892,957

-1,473,808,640

Cumulative acceptable adjustments*

Effective Tax Rate (%)

20.75326

20.95118

21.98733

21.61982

Cash Taxes Paid

2,495,312,949

171,300,292

131,515,507.61

Cash Tax Rate (%)

-45.35428

-4.64953

-1.96204

-2.91527

Remark: *‘Cumulative acceptable adjustments’ will be calculated based on amounts in two of the ‘reasons’; 1. Group-wide net operating losses; 2. Single jurisdiction tax code

IRPC operates business with transparency which complies with applicable laws as good corporate tax citizenship with our aim to add value for all stakeholders. Those two reasons for the lower ‘reported tax’ rate are explained below:

The lower ‘reported tax’ is attributed to the single jurisdiction tax code, with lower rates for Thailand compared with industry average: Revenue Code Amendment Act No. 42 B.E. 2559 dated 3 March 2016 grants a reduction of the corporate income tax rate to 20% of net taxable profit for accounting periods which begin on or after 1 January 2016.

According to IRPC’s financial statements, the income not subject to tax is made up of:

Dividends from the Stock Exchange and subsidiaries, which are recognized as income but are not subject to tax according to the Code of Revenue Section 65 Bis (10).
The Investment Promotion Act B.E. 2520 (1977) and its subsequent amendments, notably the Investment Promotion Act (No. 4) B.E. 2560 (2017), enable the Board of Investment (BOI) to grant promoted companies tax exemptions of up to 13 years for high-tech, innovation, and R&D businesses, which also entail exemptions from import duties and the ability to carry forward tax losses incurred during the tax-exemption period.