Page 212 - TSMC 2018 Annual Report

A reconciliation of income before income tax and income tax expense recognized in profit or loss was as follows:
Income before tax
Income tax expense at the statutory rate Tax effect of adjusting items:
Nondeductible (deductible) items in determining taxable income
Tax-exempt income
Additional income tax under the Alternative Minimum Tax Act 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
Income tax adjustments on prior years Other income tax adjustments
Income tax expense recognized in profit or loss
2018
$ 397,510,263
2017
$ 396,133,030
Years Ended December 31
$
80,865,915
2,539,966 (54,543,521) (12,11,3435,56,4815)4
7,420,479 (1,474,808) (3,072,554) (6,028,374)
47,162,957 (989,984)
152,884 46,325,857
$
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
$
$
For the year ended December 31, 2017, the Company applied a tax rate of 17% for entities subject to the R.O.C. Income Tax Law. In February 2018, the Income Tax Law in the R.O.C. was amended and, starting from 2018, the corporate income tax rate was adjusted from 17% to 20%. In addition, the tax rate for 2018 unappropriated earnings was reduced from 10% to 5%.
For other jurisdictions, taxes are calculated using the applicable tax rate for each individual jurisdiction. b. Income tax expense recognized in other comprehensive income
Deferred income tax benefit (expense)
Related to remeasurement of defined benefit obligation Related to unrealized gain/loss on investments in equity
instruments at FVTOCI
Related to gain/loss on cash flow hedges
Related to unrealized gain/loss on available-for-sale financial
assets
2018
$ 103,339
91,828 562
- $ 195,729
2017
30,562
- (562)
(2,974) $ 27,026
Years Ended December 31
$
- 65 -