Tax Strategy Guidelines

GGC has established a tax policy to supervise risk management and disclose tax information with transparency, in line with the company's strategy and business goals.

Tax Transparency

GGC has disclosed information on the annual payment of corporate income tax in the country where GGC’s business operates. This consists of the total income, operating profit, and the corporate income tax as seen in the tables below.

Corporate Income Tax Payment for 2020 (million THB)

Thailand
Country
Revenue
Earning Before Tax
Reported Tax
Number of Employees

GGC Group's Main Business Units and Activities

Thailand Business Activities
Global Green Chemicals Public Company Limited Production, distribution and transportation of oleochemical products
Subsidiaries
Thai Fatty Alcohols Co., Ltd. Manufacturing and distributing biochemical products
GGC Biochemical Co., Ltd. Holding company and local business operations
Joint ventures
Thai Ethoxylate Co., Ltd. Manufacturing and distributing chemical and ethoxylate products, such as Fatty Alcohol Ethoxylate
Indirect joint ventures
GGC KTIS Bioindustrial Co., Ltd. Manufacturing and distribution of biofuels

In addition, GGC disclosed the reported tax rates and the actual tax rates paid in 2019 and 2020 as follows:

Unit: million THB

Details 2019 2020 Average
Earnings before taxes 227 575 -
Reported taxes 133 15 -
Reported tax rate (percent) 58.59 2.61 18.45
Cash taxes paid 2.75 2.36 -
Cash tax rate (percent) 1.21 0.41 0.64

GGC properly manages corporate income tax under Thai law. In 2020, GGC had an average reported tax rate of 18.45% and an actual tax rate of 0.64%, which is lower than the actual corporate income tax rate of 20%, according to the Thai law, because GGC received special privileges for corporate income tax exemption and reduction from the Board of Investment of Thailand (BOI) in three main areas:

Corporate income tax exemption for
years
50% corporate income tax reduction from the normal rate for
years
The ability to deduct twice as much for transportation, electricity, and water costs from the total corporate income tax for
years
An Audit of GGC’s Actual Tax Rate is defined as follows:

Unit: million THB

Details Rate 2019 Rate 2020
Profit before taxes 227 575
Income tax using Thai corporation tax rate 20% 45 20% 115
Income not subjected to taxes (13) (78)
Expenses deductible at a greater amount (149) (41)
Utilization tax losses (17) (35)
Expenses not deductible for tax purposes 122 54
Share of net profits from investments in an associate or joint venture (6) (12)
Temporary difference 133 15
Others 18 (3)
Total 58.59% 133 2.61% 15