Page 204 - 2017 TSMC Annual Report

A reconciliation of income before income tax and income tax expense recognized in profit or loss was as follows:
Years Ended December 31
Income before tax
Income tax expense at the statutory rate Tax effect of adjusting items:
Deductible items in determining taxable income
Tax-exempt income
Additional income tax on unappropriated earnings Effect of tax rate changes on deferred income tax The origination and reversal of temporary differences Income tax credits
Remeasurement of operating loss carryforward
Income tax adjustments on prior years Other income tax adjustments
Income tax expense recognized in profit or loss
2017
$ 396,133,030
2016
$ 385,959,380
$
69,608,602
(1,410,955) (16,901,134)
11,835,948 561,818
(4,336,110) (5,628,630)
- 53,729,539
(896,147) 152,790
52,986,182
$
66,945,088
(51,324) (19,594,962)
11,957,213 -
(1,775,023) (4,940,147) (400)
52,540,445 (1,041,762)
122,461 51,621,144
For the years ended December 31, 2017 and 2016, the Company applied a tax rate
subject to the R.O.C. Income Tax Law; for other jurisdictions, the Company measures taxes by using the applicable tax rate for each individual jurisdiction.
In January 2018, it was announced that the Income Tax Law in the R.O.C. was amended and, starting from 2018, the corporate income tax rate will be adjusted from 17% to 20%. In addition, the tax rate applicable to unappropriated earnings will be reduced from 10% to 5%. Deferred tax assets and deferred tax liabilities recognized as of December 31, 2017 are expected to be adjusted and would increase by NT$1,473,065 thousand and NT$15,096 thousand, respectively, in 2018.
b. Income tax expense recognized in other comprehensive income
Deferred income tax benefit (expense) Relatedtoremeasurementofdefinedbenefitobligation Related to unrealized gain/loss on available-for-sale
financial assets
Related to gain/loss on cash flow hedges
Years Ended December 31
$
$
of 17% for entities
- 56 -
- 56 -
2017
$ 30,562
(2,974) (562)
$ 27,026
2016
$126,867
(61,176) -
$ 65,691