Company: AMKR
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0001047127-25-000087
Chunk: 85

Company: AMKOR TECHNOLOGY, INC.
Filing Date: 2025-04-29
Form: 10-Q
Item: Part II, Item 1A
Chunk 85
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 or financial condition. 

We could suffer adverse tax and other financial consequences if there are changes in tax laws or taxing authorities do not agree with our interpretation of applicable tax laws, including whether we continue to qualify for conditional reduced tax rates, or if we are required to establish or adjust valuation allowances on deferred tax assets.

We earn a substantial portion of our income in foreign countries, and our operations are subject to tax in multiple jurisdictions with complicated and varied tax regimes.  Tax laws and income tax rates in these jurisdictions are subject to change due to economic and political conditions.  Changes in the tax laws of foreign jurisdictions 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.  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 (