UTAC Group Tax Governance Policy Statement


UTAC endeavours to create a long-term and sustainable business for its stakeholders in the jurisdictions that it operates in. Given the Group’s extensive range of operations globally, this Statement provides an outline of key principles set out in the Group’s Tax Governance Policy, including the Group’s commitment towards compliance with tax laws, its governance structure for managing tax risks and its relationship with tax authorities.

1. Compliance with Tax Laws

UTAC is committed to complying with and respecting the intent of all relevant tax laws and regulations applicable to us.

Our business is driven by genuine commercial and economic activities and we are committed to contributing our fair share of taxes based on the substantive economic activities performed and the value created. In line with our conservative risk appetite and low tolerance approach towards tax risks, we will not undertake aggressive tax planning nor endorse the use of artificial structures intended to unlawfully avoid or reduce taxes. UTAC is committed to ensuring that the applicable and relevant transfer pricing regulations and principles relevant to our intragroup transactions are adhered to. Our commitment to comply with tax laws and our approach to doing business is in line with the principles outlined by the Organisation for Economic Co-operation and Development (OECD), especially on matters relating to transfer pricing.

To maintain our high standard of compliance with the relevant tax laws and regulations, our policies and procedures are periodically reviewed and updated when necessary to reflect changes in tax laws and regulations that are relevant and applicable to our business. The review cycle adopted for the Group’s Tax Governance Policy is in line with the review cycle of the Group’s policies.

2. Governance Structure for Managing Tax Risks

The Group’s governance structure for managing tax risks is outlined in this section.

UTAC’s Chief Financial Officer (“CFO”) oversees the Corporate Tax function and retains qualified external tax advisors to ensure compliance. The CFO reviews, evaluates, and approves tax strategies and policies established by the Corporate Tax function. The CFO is responsible for ensuring that the Board or Audit Committee are apprised when the Group’s Tax Governance Policy is communicated to the relevant stakeholders within UTAC, and escalates key tax risks to the Board or Audit Committee as appropriate.

The Tax function is primarily responsible for tax compliance matters and day-to-day aspects of tax risk management.

Material tax risks will be promptly escalated to the Chief Financial Officer, Audit Committee or the Board. Depending on the complexity of the tax issue and the materiality of the tax risk, the Group may engage qualified professional tax advisors to provide advice, including the appropriate next course of action to respond to the tax risk. Qualified professional tax advisors are also engaged by the Group to support the Tax function in fulfilling UTAC’s tax filing obligations. The Group employs qualified personnel (with professional accreditation) with the necessary skills and knowledge to manage tax matters effectively and mitigate any tax risks. The Tax function is committed to keeping themselves competent and abreast of changes in the tax laws and regulations, through attending regular trainings or update sessions facilitated by professional services firms or relevant authoritative bodies.

3. Relationship with Tax Authorities

UTAC strives to build a collaborative and transparent relationship with the tax authorities in the respective jurisdictions where the Group has a presence in, based on respect and mutual trust. This includes proactively working with the respective tax authorities to resolve uncertain tax issues, providing accurate disclosure of the necessary and relevant facts in our communications with the tax authorities.