Page 237 - Tata Steel One Report 2024-Eng-Ebook HY

Business Operation and Performance Driving Business Towards Sustainability Corporate Governance Policy Financial Statements
Attachments
Tata Steel (Thailand) Public Company Limited
Notes to the Consolidated and Separate Financial Statements
Tata Steel (Thailand) Public Company Limited
Notes to the Consolidated and Separate Financial Statements
For the year ended 31 March 2025
Remeasurement on retirement benefit obligations
Other comprehensive income
Current tax
Deferred tax (Note 19)
For the year ended 31 March 2025
2025 Tax credit/
(charge) Thousand Baht
402 402
- 402
402
Separate financial statements
2024 Tax credit/
(charge) After tax Thousand Thousand Baht Baht
478 (1,914) 478 (1,914)
- 478
478
Before tax Thousand Baht
(2,012) (2,012)
After tax Thousand Baht
(1,610) (1,610)
Before tax Thousand Baht
(2,392) (2,392)
In December 2021, the Organisation for Economic Co-operation and Development (OECD) released the Pillar Two model rules to reform international corporate taxation that aim to ensure that large multinationals pay a minimum effective corporate tax rate of 15% in each jurisdiction in which they operate.
The Group is within the scope of the Pillar Two model rules. In 2024, Pillar Two legislation was enacted in Thailand, the jurisdictions in which the Company is incorporated, and will come into effect on 1 January 2025. The Pillar Two legislation wasn’t effective at the reporting date, so the Group has no related current tax exposure. The Group has applied the exception to recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes as provided in TAS 12.
Under the legislation, the Group is liable to pay a top-up tax for the difference between its GloBE effective tax rate in the jurisdiction of the Group and the 15% minimum rate. The Group has accounting effective tax rates that exceed 15% in all jurisdictions in which it operates.
Due to the complexities in applying the legislation and calculating GloBE income, the quantitative impact of the enacted legislation isn’t yet reasonably estimable. The Group is currently engaged with tax specialists to assist it with applying the legislation.
Conversely, even for those entities with an accounting effective tax rate above 15%, there might still be Pillar Two tax implications. This is due to the impact of specific adjustments outlined in the Pillar Two legislation, which give rise to
different effective tax rates (the GloBE rules) compared to the average effective tax rate in accordance with TAS 12.
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