test
2 End hunger, achieve food security and improved nutrition and promote sustainable agriculture
goal 3
goal 4
goal 5
goal 6
goal 7
goal 8
goal 9
goal 10
goal 11
goal 12
goal 13
goal 14
goal 15
Goal 16
16.3: Promote the rules of law and the national and international levels and ensure equal access to justice for all.
16.5: Substantially reduce corruption and bribery in all their forms
16.7 Ensure responsive, inclusive, participatory and representative decision-making at all levels
16.b: Promote and enforce non-discriminatory laws and policies for sustainable development
Goal 17
TAX MANAGEMENT
Berli Jucker Public Company and Subsidiaries (“BJC Group”) acknowledged that Tax is an integral part to the nations socio-economic development, which elevates the quality of life for the nation. For this reason, BJC Group prioritizes strict and accurate compliance with tax management based on the principle of accuracy, transparency, and accountability, enabling BJC Group to achieve the highest benefits for the Group and all relevant stakeholders. All tax management, strategy and practices in BJC are conducted in compliance with BJC's strategy and ethics, bringing about a more sustainable growth. BJC Group predominantly operated and is managed in Thailand, with no material revenues from operations or assets overseas.
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Tax Reporting
Tax paid in each country as the table below: (Summary Tax Information – FY2023) |
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Tax Paid (Unit: THB) | |||||
| Business Activities | Employees No. | Total Revenue | Operating Profit | Current Tax Expense Relating to Current Year |
Current Tax Expense | Income Tax Expense |
| Thailand | ||||||
| Manufacturing, Distribution, Sales, Marketing, R&D |
46,175 |
155,107,007,880 | 5,213,673,596 | 754,528,616 | 773,957,310 | 335,299,706 |
| Vietnam | ||||||
| Manufacturing, Distribution, Sales, Marketing, R&D |
8,276 |
12,244,238,238 | 4,117,492,724 | 170,303,279 | 170,303,279 | 152,039,859 |
| Cambodia | ||||||
| Manufacturing, Distribution |
328 |
50,343,473 | 29,353,130 | 296,336 | 296,336 | 503,382 |
| Malaysia | ||||||
| Manufacturing |
474 |
430,689,442 | (242,755,311) | 3,524,903 | 3,524,903 | 6,552,861 |
| Others (e.g. China, Hong Kong, Myanmar etc.) | ||||||
| Sales, Marketing |
742 |
197,392,770 |
(2,903,277,117) | 9,089,837 | 9,089,837 | 8,556,044 |
| Total | 168,029,671,803 | 6,214,487,022 | 937,742,971 | 957,171,665 | 502,951,852 | |
Effective Tax Rate
The table below presents BJC’s Reported Tax Rate and Cash Tax Rate for 2021 - 2023. This information can be reconciled to our consolidated statement of income and cash flow statement.
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Financial Reporting |
FY2022 |
FY2023 |
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Earnings before Tax (THB) |
6,236,163,842 |
6,214,487,017 |
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Reported Taxes (THB) |
435,417,425 |
502,951,850 |
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Cumulative acceptable adjustable |
- |
- |
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Effective Tax Rate (%) |
6.98214 |
8.09322 |
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Cash Taxes Paid (THB) |
1,841,495,742 |
1,730,119,010 |
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Cash Tax Rate (%) |
29.5293 |
27.84009 |
| Income Tax Accrued (THB) |
422,493,366 |
564,992,234 |
Summary Tax Privileges 2023
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Tax exemption granted by Thailand Board of Investment (BOI) |
-2.28% |
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Income not subjected to tax i.e. dividend, foreign income |
-0.91% |
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Expenses for tax incentives i.e. asset investment, R&D, employing people with disabilities |
-1.42% |
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Tax loss carryforward and Others |
-7.30% |
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Tax Privileges |
-11.91% |
The majority of the BJC’s income is derived from Thailand which is subject to the CIT at 20%. However, the reported tax rate in FY2023 is 8% which is lower. From the annual report, the reconciliations of the effective tax rate provide reasons as follows:
Tax exemption granted by Thai Board of Investment (BOI)
BJC’s subsidiaries have been granted tax privileges by the Board of Investment (“BOI”) relating to the manufacturing of glass and aluminum containers and the projects of electricity generation from solar roof. The privileges granted includes the tax exemption for the income derived from the promoted businesses for 8 years from the date on which income is first derived from the promoted businesses.
Income not subject to tax i.e. foreign income and dividend
There are BJC’s subsidiaries in the countries that provide tax exemption on specified foreign-sourced income referring to local foreign tax regulation. For example, a Hong Kong company negotiates and concludes the terms of the purchase and sale contracts with suppliers and customers outside Hong Kong and also carries out the relevant operations outside Hong Kong. It may be possible to claim that the trading profits so derived are non-taxable in Hong Kong.
Expenses for tax incentives
- 100% additional deduction on investment in certain assets paid between 3 November 2015 and 31 December 2016 under the Royal Decree No. 604
- 50% additional deduction on investment in certain assets paid during 2017 under the Royal Decree No. 642
- 150% additional deduction on investment in certain assets paid during 2020 under the Royal Decree No. 695
- 100% additional deduction in respect of expenditure incurred on employing people with disabilities under the Royal Decree No. 499
- 100% additional deduction in respect of expenditure incurred in Thailand on R&D for technology and innovation (including product and process innovation) when hiring government agencies or the private sector under the Royal Decree No. 297
Tax loss carryforward
BJC's subsidiaries that generate profit and have tax obligations are utilized its loss carryforward, offsetting it against profits and make no tax payment in the current year.