Taishin FHC Corporate Social Responsibility Report 2019

45 Sustainable Governance Note: The Group's cash tax rate was lower than the effective tax rate mainly because the financial accounting standards and tax laws recognize certain transactions at different timing, which created temporary difference. Amounts of income tax paid by Taishin FHC by country for 2018 and 2019 Comparison between the Group's effective tax rate and GICS average effective tax rate for the banking industry Country/ Region Effective tax rate (%) Statutory tax rate (%) 9.18 20 Taiwan 29.87 25 China 0.00 16.50 Hong Kong 0.00 17 Singapore 0.00 23.40 Japan 11.97 30 Australia Country/ Region Effective tax rate (%) Statutory tax rate (%) Taiwan China Hong Kong Singapore Japan Australia 2018 Unit: TWD 1,000 90.84 11.06 828,557 2,369,584 2,414,194 1,457,810 83,217 17 6.75 24.91 25 0.00 16.50 16.66 17 31.73 23.40 32.98 30 2019 2018 947,122 1,623,398 -156,326 2019 Unit: TWD 1,000 2018 14,236,383 2019 16,273,574 Pre-tax income 1,306,250 1,787,643 Income tax expense 9.18 10.98 Effective tax rate (%) 1,258,842 1,002,624 Income tax paid 8.84 6.16 Cash tax rate (%)（Note) Cause of difference Pro-forma tax effec (Unit: TWD 1,000 ) Description Global average effective tax rate of peer industries was 25.82% in 2018 and 2019, respectively higher than that of the Group. This was due to the fact that the Group operates mainly in Taiwan, where the applicable statutory tax rate was 20% in 2018 and 2019, respectively. Furthermore, the Group's pre-tax income included tax-exempt OBU income, ceased to be imposed securities trading income, unrealized share of profit of associates accounted for using equity method, and other items subject to adjustment according to the tax laws of Taiwan. Tax law of single jurisdiction Total Taiwan China Hong Kong Singapore Japan Australia Taiwan China Hong Kong Singapore Japan Australia 910,805 67,652 0 0 337 23,830 % % 0.00 % 0.00 % 0.03 % 2.38 % 1,002,624 Total ● Difference between Taiwan's statutory tax rate and average effective tax rate of industry peers ● Difference from tax-exempt income in Taiwan ● Difference from other adjustments under Taiwan tax laws 95.81 3.33 Unit: TWD 1,000 1,206,082 41,916 0 0 908 9,936 % % 0.00 % 0.00 % 0.07 % 0.79 % 1,258,842 Total Income tax paid Income tax paid