Tax Strategy
Challenges and Commitments
GGC conducts business with the commitment of transparency and adheres to the principles of accuracy, transparency, verifiability and awareness of duties and responsibilities in relation to tax operations to build trust and maximize benefits to stakeholders related to the Company's business operations. This is sustainable in the long term. The company has prepared a tax policy under good corporate governance and operates its tax strategy efficiently, consisting of 3 pillars: Tax Ethics, Tax Risk Management, and Tax Transparency.
Key Stakeholders
Shareholder, Investor and Analyst
Customer
Government
Supplier and Business Partner
Community, Social and Environment
Tax Strategy Guidelines
GGC has formulated a tax policy to supervise risk management and disclose tax information with transparency, consistent with the Company’s strategy and business goals.
Tax Transparency
GGC publicly reports on the following for each tax jurisdiction in which we operate, which consists of the Company’s revenue, earning before tax, and corporate income tax paid as follows:
Corporate Income Tax Payment for 2024 (million THB)
*100% of revenue comes from Thailand.
** Sales and service income
*** Operating Profit before tax
GGC is engaged in primary activities in the Oleochemical Industry, with its main production base located in Thailand. In addition, it also cooperates with associates / business partners in various business operations to support future business expansion, which the Company is committed to supervising to ensure that associates and business partners will conduct business in accordance with the Company's set tax practices.
GGC Group's Main Business Units and Primary Activities
| Thailand | Business Activities |
|---|---|
| Global Green Chemicals Public Company Limited | Production, distribution and transportation of oleochemical products |
| Subsidiaries | |
| GGC Biochemical Co., Ltd. | Holding and operating local business |
| Joint venture | |
| Thai Ethoxylate Co., Ltd. | Production and sale of Fatty Alcohol Ethoxylates |
| Indirect joint venture | |
| GGC KTIS Bioindustrial Co., Ltd. | Power generation and distribution/production of sugarcane-based ethanol |
In addition, the Company has disclosed the Reported Tax Rates and Actual Tax Rates in 2023 and 2024 as follows:
Unit: Million THB
| Details | 2023 | 2024 | Average |
|---|---|---|---|
| Earning before Tax | (120) | (220) | - |
| Reported Tax | 82 | 45 | - |
| Reported Tax Rate (percent) | (68.60) | 20.45 | (37.34) |
| Cash Taxes Paid | 120 | 0.143 | - |
| Cash Tax Rate (percent) | (100.67) | (0.07) | (35.47) |
The Company manages its corporate income tax in full compliance with Thai laws. In 2024, the Company reported an average tax rate (Reported Tax Rate) of 20.45%, while the actual tax paid was 0% due to operating losses, resulting in no tax liabilities.
Unit: Million THB
| Details | Rate | 2023 | Rate | 2024 |
|---|---|---|---|---|
| Operating profit before tax | (120) | (220) | ||
| Income tax using the corporate income tax rate of Thailand. | 20% | (24) | 20% | (44) |
| Non-Taxed Income | - | - | ||
| Additional deductible expenses | (7) | (89) | ||
| Accumulated tax loss (Refers to Timing-Issues outside of the two years period) | 92 | 59 | ||
| Expenses that are not subject to taxation | 5 | 3 | ||
| Share of profit from investments in joint ventures | 17 | 113 | ||
| List of temporary differences | - | - | ||
| Others | (1) | 3 | ||
| Total | (68.60%) | 82 | (20.45%) | 45 |
Notes:
The operating performance under tax exemption privileges resulted in a total loss of THB 529 million, comprising a loss of THB 529 million from the operations of the Methyl Ester Plant 1 and a loss of THB 86 million from the operations of the Methyl Ester Plant 2. However, the Company recorded a profit of THB 86 million from the operations of the Glycerin Plant 2, which is eligible for tax exemption under its investment promotion certificate. The details are as follows:
- Income exempt from tax from BOI privileges in the amount of 8,852 million THB and 12,296 million THB in 2023 and 2024, respectively.
- Cost of sales and selling and administrative expense from operating performance under tax exemption privileges amount of 9,055 million THB and 12,819 million THB in 2023 and 2024, respectively.
- Adjustment Items: This refers to the result of adding back non-deductible expenses and deducting additional allowable expenses / income eligible for tax exemptions under tax incentives provided by the Revenue Code and the Investment Promotion Act, amounting to THB (114) million in 2023 and THB (6) million in 2024, respectively.