Page 200 - 2017 TSMC Annual Report

Any appropriations of the profits are subject to shareholders’ approval in the following year.
The appropriation for legal capital reserve shall be made until the reserve equals the Company’s paid-in capital. The reserve may be used to offset a deficit, or be distributed as dividends in cash or stocks for the portion in excess of 25% of the paid-in capital if the Company incurs no loss.
Pursuant to existing regulations, the Company is required to set aside additional special capital reserve equivalent to the net debit balance of the other components of stockholders’ equity, such as the accumulated balance of foreign currency translation reserve, unrealized valuation gain/loss from available-for-sale financial assets, gain/loss from changes in fair value of hedging instruments in cash flow hedges, etc. For the subsequent decrease in the deduction amount to stockholders’ equity, any special reserve appropriated may be reversed to the extent that the net debit balance reverses.
The appropriations of 2016 and 2015 earnings have been approved by TSMC’s shareholders in its
meetings held on June 8, 2017 and June 7, 2016, respectively. share were as follows:
The appropriations and dividends per
Dividends Per Share (NT$)
Appropriation of Earnings
Legal capital reserve
Cash dividends to shareholders
For Fiscal Year 2016
$ 33,424,718 181,512,663
For Fiscal Year 2015
$ 30,657,384 155,582,283
For Fiscal Year 2016
$ 7
For Fiscal Year 2015
$ 6
$ 214,937,381
TSMC’s appropriations of earnings for 2017 had been approved in the meeting of the Board of
Directors held on February 13, 2018.
Legal capital reserve
Special capital reserve
Cash dividends to shareholders
$ 186,239,667
The appropriations and dividends per share were as follows:
Appropriation of Earnings For Fiscal Year
Dividends Per Share (NT$) For Fiscal Year
The appropriations of earnings for 2017 are to be presented for approval in the TSMC’s shareholders’ meeting to be held on June 5, 2018 (expected).
Under the Integrated Income Tax System that became effective on January 1, 1998, the R.O.C. resident shareholders are allowed a tax credit for their proportionate share of the income tax paid by TSMC on earnings generated since January 1, 1998.
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$
2017 2017
34,311,148
26,907,527 207,443,044 $
$ 268,661,719
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