Tax Governance

Approach to tax

Guided by the principles of integrity and honesty, E.SUN FHC is committed to not using tax havens or special transaction arrangements for tax avoidance. We strictly comply with the tax laws and regulations of the jurisdictions in which we operate to ensure appropriate tax payments. Through our tax governance and transfer pricing policies, we have established robust oversight mechanisms and a culture of transparent communication, fulfilling our commitment to society through substantive tax contributions and putting our sustainable development values into practice.

•The nine principles of tax governance and transfer pricing policy are as follows:

Principles of E.SUN FHC Tax Governance and Transfer Pricing Policy
Tax Compliance	Complying with the letter and the spirit of tax laws and regulations to file tax returns and prepare related documents.
Comprehensive Decision	Evaluating the impacts comprehensively and making tax strategies in accordance with local and international tax trends.
Transparency	Disclosing tax information in financial reports and annual reports regularly and publicly to ensure information transparency.
Proactive communication	Developing open and transparent dialogues with tax authorities to assist in improving tax systems.
Tax incentives	Instead of seeking abusive tax results violating the spirit of tax laws to decrease tax burden, we use legal and transparent tax incentives.
Business structure	Business structure and transactions shall reflect economic reality. No special arrangements shall be used to avoid paying tax.
Risk management	Evaluating potential tax risks and adopting appropriate strategies when we make tax decision.
Commercial substance	Related-party transactions shall reflect economic reality and the decision-making party shall bear risk and take reasonable profits.
Arm's length principle	The trade terms of related-party transactions should be similar to non-related-party's.

Tax Governance and Risk Control Mechanism

The Board, as the highest governance body for tax matters at E.SUN FHC, reviews tax compliance across domestic and overseas operations at least every six months and receives updates on tax law developments to maintain oversight of tax risks and global tax trends. Examples of implementation during the year are set out below.

Item	Case Description
Compliance and planning	In 2025, E.SUN FHC engaged an external accounting firm to provide group-wide training on the Global Minimum Tax (GMT), and to conduct tax impact assessments and prepare related financial disclosures and filing information.
Risk management	E.SUN FHC maintains a low tax risk appetite and tolerance, with the Board exercising oversight through risk identification and the three lines of defense framework. Internal and external whistleblowing channels are also available for reporting unlawful tax-related matters.
Succession planning	E.SUN FHC and its subsidiaries employ dedicated tax professionals and enhance tax expertise through seminars hosted by accounting firms and engagement with external tax advisors. E.SUN Bank also supports knowledge transfer through domestic and overseas tax manuals.
Performance appraisal	At the beginning of each year, E.SUN FHC and its subsidiaries set objectives for tax personnel in line with the Group's development strategy, and execute work plans accordingly. Aggressive tax practices are strictly prohibited for performance purposes.

Stakeholder engagement and management of concerns related to tax

To reinforce public trust, we proactively contact stakeholders to discuss tax issues and engage in public policy advocacy on tax to support the improvement of tax environment.

Tax authorities	E.SUN FHC and its subsidiaries maintain open and honest communication with tax authorities. In 2025, E.SUN Bank proactively engaged with the tax authority on the VAT treatment of exported services. Through 10 rounds of supplemental submissions, the authority gained a full understanding of the nature of the transactions and ultimately approved the application of the zero VAT rate, reducing tax compliance uncertainty.
Public tax advocacy -NGO	E.SUN FHC continues to participate in online tax dialogues hosted by the global tax advocacy organization The B Team, using these regular discussions to stay informed of OECD legislative developments and tax issues of stakeholder concern.
Peers and Banker Association	In 2025, E.SUN FHC engaged with domestic peers through the Bankers Association to discuss the potential operational impact of the implementation period for OBU tax incentives, enabling early awareness of policy trends and implications. In addition, E.SUN Bank applied for R&D tax credits in line with government policy and proactively communicated with the relevant authorities, fostering two-way communication across agencies.
Independent Directors and Investors	E.SUN FHC discloses tax information and analyzes changes in its effective tax rate on its official website each year. The Board includes independent directors with accounting and tax expertise, who oversee tax management and risk control through quarterly Board and Audit Committee meetings. In 2025, the Board also continued to review progress on the implementation of the GMT.