Company: AMKR
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0001047127-25-000190
Chunk: 27

Company: AMKOR TECHNOLOGY, INC.
Filing Date: 2025-10-28
Form: 10-Q
Item: Part I, Item 3
Chunk 27
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 could arise as a result of the base erosion and profit shifting project that was undertaken by the Organization for Economic Cooperation and Development (“OECD”).  The OECD, which represents a coalition of member countries, recommended changes to long-standing tax principles related to transfer pricing and has developed model rules including establishing a global minimum corporate income tax tested on a jurisdictional basis (the “Pillar Two Model Rules”).  Some countries we operate in have enacted laws based on the Pillar Two Model Rules effective in 2024.  While the Pillar Two Model Rules did not have a material impact on our 2024 results, additional countries where we operate, including Singapore, have adopted Pillar Two Model Rules effective in 2025.  Enactment of this legislation is expected to adversely affect our effective tax rate, tax payments and conditional reduced tax rates.  On July 4, 2025, the OBBBA was enacted in the United States, which includes significant provisions such as modifications to the international tax framework and the investment tax credit rate under the CHIPS Act, and restoration of tax treatment for certain business provisions.  The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027.  Changes in U.S. or foreign tax laws, including new or modified guidance with respect to existing tax laws, could have a material adverse impact on our liquidity, results of operations, financial condition and cash flows.  

Our tax liabilities are based, in part, on our corporate structure, interpretations of various U.S. and foreign tax laws, including withholding tax, compliance with conditional reduced tax rate requirements, application of changes in tax law to our operations and other relevant laws of applicable taxing jurisdictions.  From time to time, taxing authorities may conduct examinations of our income tax returns and other regulatory filings.  We cannot assure you that the taxing authorities will agree with our interpretations, including whether we continue to qualify for conditional reduced tax rates.  If they do not agree, we may seek to enter into settlements with the taxing authorities.  We may also appeal a taxing authority’s determination to the appropriate governmental authorities, but we cannot be sure we will prevail.  If we do not prevail or if we enter into settlements with taxing authorities, we may have to make significant payments or otherwise record charges (or reduce tax assets) that materially and adversely affect our results of operations, financial condition and cash flows.  Additionally, certain of our subsidiaries operate under conditional reduced tax rates, which will expire in whole or in part