Tax Disclosure
The table below shows the total revenue that incorporates operating profit and corporate income tax (including the corporate income accrued) for countries where we operate the business. This information is consistent with the consolidated financial statement in 2021. Sector-specific taxes, VAT, and other fiscal contributions/levies, which often exceed the total corporate income tax, are not included
Consolidated sale revenue breakdown by geographical locations of sellers for the year 2021 | |
---|---|
Thailand | 96% |
France | 2% |
Others | 2% |
Sales revenue of main products breakdown by geographical locations of customers for the year 2021
SALES REVENUE OF MAIN PRODUCTS
Breakdown by Geography Year 2021
- Represent the sales revenue based on the geographical location of customers.
- More than 90% of consolidated sales revenue is generated from companies in Thailand.
SALES REVENUE
Breakdown by Business Year 2021: Baht 465,128 Million
ADJUSTED EBITDA*
Breakdown by Business Year 2021: Baht 55,186 Million
In Thailand, governments develop tax incentives which generally be available to any business that meets the relevant criteria as commonly using in many countries in order to encourage investment, usually results in job creation and the expansion of infrastructure, aiding social and economic development. For example, i) in Singapore, company can use tax exemption for eligible criteria and ii) in Switzerland, the tax holiday is generally granted for five to ten years based on the federal law on regional politic.
GC Group uses available and appropriate tax incentives and tax holidays where we have a qualifying business activity. Most of our local operations relating to refinery and petrochemical mainly obtained tax privileges granted by the Thai Government, namely “the Board of Investment (BOI) of Thailand”, which offered into three main areas (please see in more details : https://www.boi.go.th/index.php?page=incentive):
- Corporate income tax exemption (tax holiday) for 8 years from the date on which the income is first derived from such operations; and
- A 50% reduction in the normal income tax rate for another 5 years, commencing from the expiry date in (i) above; and
- Double deduction of transportation, electricity, and water costs from corporate taxable income for 10 years.
The statutory corporate income tax (CIT) in Thailand is levied at the rate of 20% on taxable profits. GC Group’s Effective Tax Rate (ETR) was generally much lower due to tax exemption and privileges obtained from BOI as mentioned above. Nonetheless, ETR does vary year by year dependent upon the effective periods of the privileges and operating performances.
We have disclosed ‘CIT Contribution by Countries’ and ‘Reported Tax Rate and Cash Tax Rate’ which is beyond the requirement of Public Listed Company on the Stock Exchange of Thailand or Government in Thailand.
Tax Reporting by Countries for the Year 2021
The table below presents total revenue, operating profit, corporate income tax accrued, corporate income tax paid and number of employees for countries in which GC Group has our production units. The financial information can be reconciled to our consolidated financial statement for the year 2021. Sector-specific taxes, VAT, and other fiscal contributions/levies, which often exceed the total corporate income tax, are not included.
Country* | |||||||
---|---|---|---|---|---|---|---|
Tax Reporting (Million THB) ** | Number of Employees (FTE) | ||||||
Revenue (A) | Operating Profit (B) | Income Tax Accrued | Income Tax Paid (Received) | ||||
Subsidiaries | Share of profit/loss from JVs & Associates | Total | |||||
Thailand | 447,662.03 | 50,765.81 | 5,436.87 | 56,202.68 | 740.01 | 3,926.11 | 6,378 |
France | 9,732.33 | (858.93) | - | (858.93) | 0.77 | 2.83 | 502 |
US | 2,257.49 | (1,882.06) | 1,155.15 | (726.91) | 12.55 | 178.95 | 567 |
Other Countries | 9,301.33 | (2,086.98) | 248.57 | (1,838.41) | 718.12 | 95.15 | 3,372 |
Total | 468,953.18 | 45,937.85 | 6,840.59 | 52,778.43 | 1,471.45 | 4,203.03 | 10,819 |
Remark:
(A) Revenue from sales and services
(B) Operational profit before tax
* These countries represent where GC Group has our production units.
** The financial information in the above table is consistent with GC Group Consolidated Financial Statements
GC Group performance comparison between 2021 and 2020 described the following:
- For 2021 performance, the Company had total sales revenue increased from the previous year driven by products prices significantly increased mainly due to global economic recovery after the lockdown restriction of COVID-19 has been eased and global vaccination rate has gradually increased led to increase of demand for products. Additionally, tightening supply during some periods of the year also had a positive impact to products price.
- Net operating profit increased from the previous year due to demand of petrochemical and refinery Businesses continued to be recovered from the COVID-19. Moreover, the Company continues to implement various efforts including cost saving program, production cost reduction, and enhancement of production efficiency.
- Income Tax Accrued increased which was driven by some of local and oversea operations had profitability. This current tax accrued expense only reflects operations in the current year and does not include deferred taxes or provisions for uncertain tax liabilities. Whist, income tax paid incurred which were mainly from the corporate income tax accrued from the previous year, which had the obligation to pay in current year.
As of December 31, 2021, a list of entities and main business activities of GC Group that contribute over 90% of group turnover in Thailand is presented as follows
Entity by Location | |
---|---|
Thailand | Primary Business Activity |
PTT Global Chemical Public Company Limited | Manufacturing and distributing Petrochemicals and refining products |
ENVICCO Company Limited | Manufacturing, distributing, and developing recycled plastic and by-products |
GC Estate Company Limited | Real estate development for rent and to invest in petrochemical and related industries |
GC Glycol Company Limited | Manufacturing and distributing petrochemical products |
GC Logistic Solutions Company Limited | Transportation, warehouse, and bagging packing management of polyethylene plastic pellets |
GC Marketing Solutions Company Limited | Development, marketing and distribution polymers products, by-products, and other polymers-related products |
GC M PTA Company Limited | Manufacturing and distributing petrochemical products |
GC Maintenance and Engineering Company Limited | Factory maintenance and engineering services |
GC Oxirane Company Limited | Manufacturing and distributing petrochemical products |
GC Polyols Company Limited | Manufacturing and distributing petrochemical products |
GC Styrenics Company Limited | Manufacturing and distributing petrochemical products |
GC Treasury Center Company Limited | Financial service management for the group |
GC Ventures Company Limited | Invest in form of Corporate Venture Capital (CVC) |
GGC Biochemicals Company Limited | Holding and operating in Thailand |
Global Green Chemicals Public Company Limited | Manufacturing and distributing biochemical products |
NPC Safety and Environmental Service Company Limited | Safety and environmental services |
NPC S&E Security Guard Service Company Limited | Safety services |
PL Global Transport Company Limited | Transportation of polyethylene plastic pellets |
PTT Phenol Company Limited | Manufacturing and distributing petrochemical products |
Solution Creation Company Limited | Manufacturing and distributing petrochemical products and health and nutrition products |
Thai Fatty Alcohols Company Limited | Manufacturing and distributing biochemical products |
Thai PET Rasin Company Limited | Manufacturing and distributing petrochemical products |
Thai Tank Terminal Limited | Service for the storage and handling of liquid chemicals, oil and gas |
Oversea | Primary Business Activity |
GC International Corporation | Holding and operating international business |
GC Logistic Solutions (Vietnam) Company Limited | Transportation, warehouse and bagging packing management of polyethylene plastic pellets |
GC Marketing Solutions Vietnam Company Limited | Distributing polymer products and other polymers-related products |
GC Marketing Solutions Myanmar Company Limited | Distributing polymer products and other polymers-related products |
GC Marketing Solutions (Shanghai) Company Limited | Distributing polymer products and other polymers-related products |
GC Ventures America Corp. | Invest in form of Corporate Venture Capital (CVC) outside Thailand |
GCM POLYMER TRADING DMCC | Distributing polymer products and other polymers-related products |
PT GCM Marketing Solutions Indonesia | Distributing polymer products and other polymers-related products |
PTTGC America Corp. | Holding and operating international business |
PTTGC America LLC. | Operating petrochemical business |
PTTGC International (Netherlands) B.V. | Holding and operating international business |
PTTGC International Private Limited | Holding and operating international business |
PTTGC Innovation America Corporation | Research and development of bio-based chemicals |
Vencorex Holding | Holding and operating international business |
Allnex Holding GmbH | Manufacturing and distributing industrial coating resins and additives |
Reported Tax Rate and Cash Tax Rate for the year 2021
2020 | 2021 | Calculated Average | |
---|---|---|---|
Earnings before Tax |
543
|
52,778
|
-
|
Reported Taxes |
(109)
|
7,228
|
-
|
Reported Tax Rate (Percent) |
0.0%
|
13.7%
|
13.4%
|
Cash Taxes Paid |
442
|
4,203
|
-
|
Cash Tax Rate (Percent) |
81.4%
|
8.0%
|
8.7%
|
Earnings before Tax (EBT) of 2021 is significantly increased from 2020 due to demand of petrochemical and refinery Businesses continued to be recovered from the COVID-19.
As the group has operating profit, resulted in the increasing of Reported Tax Rate which is 13.7%, while Cash Tax Rate is 8%, which decreased mainly from the corporate income tax accrued from the previous year. Cash Tax Paid of current year is calculated from tax payment of prior year and first half of current year. In general, the difference between Reported tax rate and Cash tax paid was mainly caused by the following factors:
- Deferred tax; the temporary difference between tax and accounting rules
- Timing differences tax payments: the tax liability of a certain year is generally partly paid within the year, and partly in the following year.
Reconciliation of Effective Tax Rate
GC group’s Effective Tax Rate reconciliation has shown with explanation as follows
Description | Rate | 2020 (Million THB) |
Rate | 2021 (Million THB) |
---|---|---|---|---|
Profit before income Tax |
543
|
52,778
|
||
Income Tax using Thai corporation tax rate |
20%
|
109
|
20%
|
10,556
|
Effect of different tax rates in foreign jurisdictions |
(42)
|
1,823
|
||
Income not subject to tax |
(154)
|
(1,873)
|
||
Non-deductible tax expenses |
538
|
1,315
|
||
Expenses deductible at a greater amount |
(933)
|
(3,471)
|
||
Tax loss carry forward |
(574)
|
(2,112)
|
||
Over provided in prior years |
(49)
|
(41)
|
||
Share of profit of investments in joint ventures and associate |
(665)
|
(1,368)
|
||
Temporary differences |
(810)
|
3,190
|
||
Other |
2,471
|
(791)
|
||
Total |
0.0%
|
(109)
|
13.7%
|
7,228
|