Page 294 - 2017 TSMC Annual Report

Years Ended December 31
The origination and reversal of temporary differences Income tax credits
Income tax adjustments on prior years Other income tax adjustments
Income tax expense recognized in profit or loss
$
$
2017
(4,194,644)
(5,605,697) 50,992,824
(938,292) 150,168
50,204,700
$
$
2016
(1,764,503)
(4,907,269) 51,812,915
(1,039,175) 168,040
50,941,780 (Concluded)
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$1,464,963 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
c. Deferred income tax balance
The analysis of deferred income tax assets and liabilities was as follows:
December 31, 2017
Deferred income tax assets Temporary differences
$ 7,668,535 1,580,979 975,324 604,635 Others -
Depreciation
Provision for sales returns and allowance Net defined benefit liability
Unrealized loss on inventories
Deferred income tax liabilities Temporary differences
Unrealized exchange gains Available-for-sale financial assets Cash flow hedges
$
$
(169,480) (95,421) (37,304)
(302,205)
$
$
(48,736) (92,447)
- (141,183)
- 146 -
- 146 -
2017
$ 30,562
(2,974) (562)
$ 27,026
2016
$126,867
(61,176) -
$ 65,691
December 31, 2016
$ 3,284,735 1,428,787 939,543 698,858 94,858
$ 6,446,781
$ 10,829,473