GPSC manages its corporate income taxes in compliance with the tax laws of each country with accuracy, transparency, and fairness, taking into account its duty to comply with tax laws. Most of GPSC Group’s income is derived from business operations in Thailand and is subject to a corporate income tax rate of 20 percent, which is a normal rate under the law.

Reported tax rates and cash tax rates

Unit: Million Baht
2022 2021
Operational profit before tax 1,081 9,032
Income tax expense (benefit) in the financial statements (376) 1,192
Reported tax rate (percent) (34.8) 13.2
Cash tax 1,402 1,635
Cash tax rate (percent) 129.7 18.1

In 2022, GPSC Group had a reported tax rate of -34.8% (compared to13.2% in 2021) and a reported tax amounting to -376 million baht, representing income tax benefits, the amount of which can be utilized in the future. Due to the tax losses incurred, the amount was recorded as a deferred tax asset.

In addition, GPSC Group’s cash tax rate for the year 2022 was 129.7% (compared to 18.1% in 2021), which was higher than the prescribed 20% corporate income tax. This could be primarily attributed to the fact that the actual tax burden in 2022 was on a cash basis, resulting from the income tax calculation based on the net profit of 2021, which was significantly higher than that of 2022, as an energy crisis caused spikes in energy costs, significantly decreasing the gross profit margin as well as operational profits before tax in 2022, coupled with the withholding tax burden at the rate of 1% on sales and provision of services to government agencies that were contract parties with GPSC Group.

Differences between the cash tax rates and corporate income tax rates

Unit: Million Baht
Rate 2022
(Million baht)
Rate 2021
(Million baht)
Operational profit before tax   1,081 9,032
Taxes calculated from statuatory corporate income tax rates 20% 216 20% 1,806
Description:  
Expenses not deductible for tax purposes 157 78
Revenues that are granted income tax exemption or expenses that are deductible at a greater amount (350) (444)
Revenues that are granted income tax exemption and/or tax deduction derived from BOI's incentive schemes   (54) (120)
Expenses that are deductible at a greater amount (5) (14)
Amortization of intangible assets from business acquisition (291) (302)
Others (i)   - (8)
Utilization of previously unrecognized tax losses - (5)
Tax losses for the year for which no deferred income tax asset was recognized 2 60
Share of profit of investments accounted for using the equity method (308) (307)
Adjustment in respect of the prior year (31) 7
Difference in tax rates in countries the Group operates (62) (3)
Total -34.8% (376) 13.2% 1,192

(i): The majority were differences in exchange rates resulting from income tax conversion for overseas companies.