Shareholder Rights and Tax management
CSC seeks to improve tax risk management and is committed to promoting information transparency and compliance with regulations. At the same time, it supports government-promoted preferential tax policies, promotes local economic development and industrial innovation policy vision to fulfill corporate social responsibility and achieve sustainable development.
Considering the timing differences between income tax expenses accrued and income taxes paid, the 2-year average effective tax rate and 2-year average cash tax rate for the period from 2023 to 2024 (hereinafter referred to as “average effective tax rate” and “average cash tax rate”) of CSC Group are applied below to more appropriately explain CSC Group's tax responsibility.
In 2024, the majority of CSC Group's revenue and income tax payments were generated and made in Taiwan, accounting for 88% and 83% respectively. As a result, the effective tax rate and cash tax rate are primarily influenced by the statutory tax rate and tax payment schedule in Taiwan. The average effective tax rate was 19.21%, slightly below the statutory rate of 20%, mainly due to realized investment losses recognized during the 2024, which led to a lower amount of income tax payable in 2025 for the 2024 fiscal year. Meanwhile, the average cash tax rate was significantly higher at 71.20%.
CSC Group's average effective tax rate and average cash tax rate in 2024 were both higher than the industry averages for the “Materials” sector as published in the CSA Handbook. The discrepancy between the effective tax rate and the cash tax rate is primarily attributable to timing differences in tax payment.
| CSC and its Subsidiaries | |||
|---|---|---|---|
| Years | 2023 | 2024 | The average of the recent two years |
| Profit before Income Tax | 45.90 | 45.78 | |
| Income Tax Expense | 10.59 | 7.02 | |
| Effective Tax Rate | 23.07% | 15.33% | 19.21% |
| Income Taxes Paid | 41.76 | 23.52 | |
| Cash Tax Rate | 90.98% | 51.38% | 71.20% |
