Recognizing that “tax” is critical to sustainable development. It not only promotes and supports competitiveness of the business but also helps create positive socio-economic impacts as well as national development as a whole. The Company is committed to tax management as in our Tax Policy based on the principles of accuracy, transparency, and accountability in compliance with the Thailand Revenue Code and foreign tax laws for the highest benefits of the Company and all stakeholders.

(1) Income tax rate

The tax rate used in this calculation, as disclosed in the notes to financial statements No. 28, is lower than the average income tax rate of each country in which the Company has invested because some of its income is exempted from the income tax. For example, in Thailand, the Company has been granted privileges as an investment promotion under the Investment Promotion Act BE 2520 (AD 1977) in various types of businesses such as animal feed production business, animal husbandry business, animal breeding business and processing of food and ready-to-eat business. By doing so, the Company will be exempted from corporate income tax for the net profit received from the promoted business according to the period and conditions specified in each investment promotional certificates, and receive a 50% reduction in corporate income tax for the net profit derived from the promoted business for a period of 5 years from the expiration of the tax exemption period.

(2) Tax effect of income that is not considered as income and expenses that are not considered as tax expenses such as

(3) Changes in temporary differences such as

(4) Tax loss

In 2018 some of those companies have the operating profit therefore reversed the deferred tax assets and recorded as tax expenses, but in the year 2019, some subsidiaries had tax losses and were recognized as deferred tax assets and tax income.

(5) Effects of changes in tax rates

Taiwan Legislative Yuan passed the amendments to the Income Tax Act on January 18, 2018. The tax reform measures will apply retroactively for taxable years beginning as from 2018 (i.e. 1 January 2018 for calendar-year taxpayers). The amendments to the Income Tax Act included Increase in the corporate income tax rate from 17% to 20%. The Company has therefore adjusted the effect of the change by recording tax income and increasing the deferred tax assets in the year 2018.