The Company adheres to the principles of integrity, complies with tax laws and regulations in all jurisdictions of operation, and ensures that tax treatments are aligned with both the intent and substance of applicable regulations, thereby maintaining compliance and transparency. The Company applies the Arm's Length Principle to transfer pricing, ensuring that related party transactions are conducted at prices consistent with economic substance and market conditions. Furthermore, the Company maintains robust tax management and internal control systems, periodically assesses tax risks and policy execution, and enhances tax governance through professional advice and internal controls to support long term and sustainable development.

In 2024 and 2025, Nan Pao's effective tax rates were 25.8% and 27.1%, respectively, both higher than the chemical industry's average effective tax rate of 19.13% as published by the CSA.

In terms of cash tax rates, Nan Pao recorded 23.2% in 2024 and 17.6% in 2025. The lower cash tax rate in 2025, compared to the CSA industry average cash tax rate of 20.65%, was primarily due to measures under Taiwan's tax collection regulations in response to the impact of U.S. tariffs, which allowed companies to defer or pay income tax, including provisional income tax payments, in installments without accruing interest.

Nan Pao established the Nan Pao Group Tax Policy in 2023 and subsequently amended it in 2024, committing to enhancing financial transparency, disclosing tax information in accordance with relevant standards and guidelines, effectively managing tax risks, and advancing corporate sustainability objectives.