CP ALL Public Company Limited and all subsidiaries recognized that “tax” is critical to sustainable development. It not only promotes and supports competitiveness of the business but also helps make socio-economic impacts as well as national development as a whole.
The Company is committed to tax management based on the principles of accuracy, transparency, and accountability for the highest benefits of the Company and all stakeholders. The practices of tax planning and implementation are in a consistent alignment within the Group.
The Group is managed and operates principally in Thailand. There are no material revenues derived from, or assets located in, foreign countries.
Implementation
- With regards to taxation, the Company strictly complies with the revenue code and tax laws, both in the spirit and letter of the law, that are related to the Company’s business operations with laws and regulations. The Company has tax consultants which comprises personnel with an expertise in supervising over strict compliance with laws and regulations.
- The Company has a Tax Accounting Department. It is responsible for following up with the government policy or initiatives that would lead to law enactment. Study the criteria for tax measures and tax privileges so as to keep abreast of the potential impacts to the Company. And notify the responsible person on the matters that would have impacts on the Company in order to prepare the Company for complying with the new law.
- The Company does not have a policy to shift its profits to overseas subsidiaries where there is a low tax regime to avoid paying higher taxes in its home country.
- Transfer pricing for any intercompany transactions is based on the Arm’s Length Principle, which is in compliance with the Thailand Revenue Code and any related tax laws.
- The Company will not use tax structures without commercial substance or misuse the tax structure in way that would encourage tax avoidance. The company does not use tax haven for tax avoidance purpose.
- The tax policy must be approved by the board of directors before being implemented.
Tax Reporting FY 2023
| Main Business Activities | No. Permanent employees (Person) |
Tax paid (Unit : MB) | |||
|---|---|---|---|---|---|
| Total Revenue | Operating Profit/(Loss) | Current Tax Expense | Income Tax Expense | ||
| Thailand | |||||
| Convenience Store, Grocery Wholesales, Retail Business, Manufacturing, Training and related business | 176,985 | 867,912 | 27,069 | 4,247 | 4,294 |
| Malaysia | |||||
| Retail Business and related business | 1,224 | 36,837 | 358 | 269 | 247 |
| India | |||||
| Wholesale and related business | 487 | 3,556 | (411) | 0 | 0 |
| Myanmar | |||||
| Wholesale and retail operator, Providing marketing and consulting services | 225 | 2,107 | 26 | 0 | 0 |
| Singapore | |||||
| Manufacturing, Trading, Importing and Exporting of food related products | 188 | 1,393 | (125) | 0 | 0 |
| Other (e.g. Cambodia, Laos, Vietnam, China, Hongkong etc.) | |||||
| Convenience Store, Manufacturing, Trading, Import-Export, Wholesale, Retail, Education and Holding company etc. | 1,999 | 9,382 | (463) | 72 | 61 |
| Total | 181,108 | 921,187 | 26,454 | 4,588 | 4,602 |
Income Tax Expense 2023
| Reconciliation of effective tax rate | ||||
|---|---|---|---|---|
| Consolidated financial statements | ||||
| Applicable tax rate (%) | 0% | 20% | Other | Total |
| (in million Baht) | ||||
| Accounting profit (loss) before income tax expense | (12) | 27069 | (603) | 26454 |
| Income tax at the applicable tax rates | - | 5414 | (121) | 5293 |
| Tax effect of income and expenses that are not taxble income or not deductible in determining taxable profit | - | (1099) | 362 | (737) |
| Over provided in prior years | - | 52 | (6) | 43 |
| Net | - | 4367 | 235 | 4602 |
The Group’s operations is derived from business operations in Thailand which accounted for 94.22%. In 2023, profit before tax was Baht 26,454 million and corporate income tax was Baht 4,602 million according to effective tax rate of 17.40% which was different from applicable tax rate of 20% according to Revenue Code Amendment Act No.42 B.E. 2559 dated at 3 March 2016 By the Industrial Investment Promotion Act B.E. 2520 as well as certain local subsidiary has been granted privileges on an exemption from payment of corporate income tax on net profit of the promoted business.
Moreover, the Company has received tax incentives on an investment promoted policy in Thailand, which motivate increasing investment by Private Sector and economic expansion in Thailand.
Furthermore, the Company has received tax incentives for employee development and training to promote highly skilled workforce.
Annual report 2023 (English version page 297)
Tax Privileges in Thailand 2023
| Summary Tax exemption has been applied in 2023 | ||||
|---|---|---|---|---|
| Thailand Board of Investment (BOI) 0% | 0.30% | |||
| Training fee (promote the development of employee skills) of Royal Decree no. 437 | 1.07% | |||
| The acquisition of machine and automation system of Royal Decree no. 690,695,776 | 0.81% | |||
| The promote the employment of highly skilled personnel in STEM fields of Royal Decree no. 777 | 0.07% | |||
| Interest payment on perpetual subordinated bond | 0.35% | |||
| Total | 2.60% | |||
Related Policy and Guideline
| Tax Policy | Download |
