Tax Policy
Supporting the SDGs Goal
Goals
Performance Highlights 2024
Commitment, Challenge and Opportunity
Index Living Mall Public Company Limited and its subsidiaries (“the Company”) are committed to conducting business based on good governance principles, transparency, and social responsibility. Accurate and lawful tax payment is a key part of this responsibility, as taxes are public resources that support economic development and the quality of life in the communities where the Company operates. Therefore, the Company announces its “Tax Policy” and adheres to tax planning aligned with business facts, avoiding structures or transactions intended to evade taxes, and ensures full, accurate, and timely tax payment in all relevant jurisdictions.
This policy covers all types of taxes of the Group (direct and indirect), encompassing all business lines/functions, as well as related partners or transactions. It forms part of the Company’s sustainability management under the ESG framework.
Management and Operational Approach
To translate the policy into actionable practices, the Company has established the following operational guidelines:
1. Principles / Commitments
The Company manages and oversees taxes according to the following principles:
- Fully comply with all tax laws and regulations Pay taxes accurately and on time in all areas of operation.
- Business Substance Avoid transactions or structures intended for tax avoidance without a genuine business purpose.
- Arm’s Length Principle Maintain supporting documentation and disclose information in accordance with legal requirements.
- Do not use jurisdictions for the purpose of tax avoidance (Tax Haven)
- Ensure transparency in tax-related disclosures Publish the policy and related information on the Company’s website, annual report, and sustainability report.
- Communicate and enhance internal knowledge Provide regular training for relevant employees to ensure compliance with laws and the Company’s standards.
- Continuously monitor tax laws Assess impacts and plan responses to ensure fair benefits for stakeholders.
2. Governance Structure
- Board of Directors Oversees overall tax risk and approves/reviews the tax policy at least once a year.
- Audit Committee Oversees internal tax controls, reviews key issues/disputes, and receives progress reports from management.
- Chief Financial Officer (CFO) Serves as the Group’s primary tax officer, ensuring adequate resources, processes, and control systems are in place.
- Cross-Functional Tax Working Group (Finance/Accounting/Legal/Commercial/SCM/HR) Responsible for compliance, documentation, risk assessment, and internal communication.
3. Tax Risk Management
The Company defines its tax risk appetite (Low) and manages it through the following cycle:
Identify Risks
In key projects/transactions such as M&A, international business expansion, intercompany agreements, IT/logistics projects, and tax incentives.
Assess and Approve
By the CFO and relevant executives; external consultants may be engaged if the matters are complex.
Control and Monitor
Through internal controls, document reviews, and internal audits
Report and Improve
Submit to the Audit Committee and Board of Directors according to materiality levels.
4. Control Measures and Practices
- Tax filing and payment Ensure completeness, accuracy, and timeliness, with proper record-keeping in accordance with legal requirements.
- Intercompany Company transactions Prepare Transfer Pricing documentation (Local/Master File) and perform market price benchmarking in compliance with Thai and international laws, and align with global standards (e.g., BEPS, CbCR if applicable).
- Use of tax incentives Apply only those permitted by law with genuine economic substance, fully monitor conditions, and avoid exploiting legal loopholes.
- Legal changes Maintain a watch list team to analyze impacts and plan responses, such as for e-Tax Invoice or Global Minimum Tax (Pillar Two).
- Cooperation with Government Agencies Conducting business with integrity, disclosing information as required by law, and providing appropriate cooperation during audits or inspections.
- Tax Information and IT System Integrating controls within the ERP/accounting system to reduce errors and enhance the audit trail.
- Internal Training/Communication Continuously providing essential tax training for employees in relevant job functions.
5. Transparency and Channels for Complaints
- Publishing the Tax Policy and key information on the Company's website and in the annual report.
- Establishing a Whistleblowing channel (or grievance channel) that covers tax issues and corruption, accompanied by measures to protect the whistleblower and a fair investigation process.
To ensure that the Tax Policy is effectively implemented, the Company integrates tax matters with corporate governance and internal control systems, covering all departments and business partners. The following are the operating results achieved within the ESG framework that drive tax practices to be accurate, transparent, and responsible.
- Legal Compliance: The Company accurately, transparently, and timely files return and pays taxes in all jurisdictions, consistent with the Company's Tax Policy.
- Financial Performance (2024): The Company recognized income tax expense of Baht 160.8 million, an increase of Baht 21.0 million or +15% from 2023. The main reasons were an increase in profit before tax and a higher tax benefit received in the previous year's comparison base.
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Responsible Use of Tax Benefits:
- In 2024, the Company received a tax benefit of Baht 10.5 million from the use of renewable energy (Solar) under the Company's solar installation project (or Solar Rooftop project).
- In 2023, the Company previously received a benefit of Baht 24.2 million from the BOI (Board of Investment) for machinery investment, which was higher than the current year.
The Company has elevated tax matters to be part of its corporate governance and internal control, ensuring that tax filing and payment are conducted accurately, transparently, and auditable across all jurisdictions. In 2024, the Company recognized increased tax expense corresponding to its operating performance. Concurrently, it responsibly utilized tax benefits based on business facts, including benefits from the Company’s solar installation project (in 2024) and prior-year BOI incentives, adhering to the principle of not structuring business to avoid taxes. This operation reinforces the Company's commitment to accurate and fair tax compliance, coupled with the sustainable growth of the organization and all stakeholder groups.
Stakeholders Directly Impacted
Customers
Benefits Received
- Fair pricing resulting from accurate tax calculation, transparency in issuing tax invoices/tax refunds, and continuity of service due to the absence of legal risks.
Potential Impacts
- Product prices may be affected by changes in government taxation, and confusion resulting from new tax laws regarding promotions or document issuance.
Employees
Benefits Received
- Reduce legal risks in operations (or work), having clear tax standards and manuals, and providing opportunities for developing tax knowledge.
Potential Impacts
- "Increased workload during the period for filing returns/closing accounts, and pressure due to deadlines and the complexity of the law.
Shareholders
Benefits Received
- Reduce regulatory risk, a good corporate governance image, and the ability to forecast after-tax cash flow.
Potential Impacts
- The tax rate impacts net profit, and volatility resulting from changes in tax law or tax interpretation.
Business Partners
Benefits Received
- Correct withholding tax documents/tax invoices, reduced accounting and tax disputes, and stable business relationships.
Potential Impacts
- Increased documentation burden and procedures; risk of delayed payment if documents are incomplete.
Communities and Society
Benefits Received
- Accurate tax payment supports government revenue and local development, strengthening confidence in the organization's transparency.
Potential Impacts
- Misunderstanding regarding tax issues if communication is unclear, and potential impact on image (or reputation) if a tax dispute arises.
Government and Others Agencies
Benefits Received
- Timely receipt of data and submission of forms, making it easier for inspection (or auditing) and legal enforcement.
Potential Impacts
- "Increased inspection burden when complex transactions occur, reliance on the accuracy of data from the Company.
