Page 214 - TSMC 2018 Annual Report

Year Ended December 31, 2017
Balance, Beginning of Year
Recognized in
Deferred income tax assets
Temporary differences Depreciation
Provision for sales returns and
allowance
Net defined benefit liability Unrealized loss on inventories Deferred compensation cost Others
Operating loss carryforward
Deferred income tax liabilities
Temporary differences Unrealized exchange gains Available-for-sale financial
assets Others
$
$
$
$
4,244,214
1,512,061 939,543 737,247 378,740 445,133
14,483 8,271,421
(48,736
(92,447 -
$
$
$
4,207,209
129,971 5,219
(105,068 ) (83,124 ) (222,429 )
- 3,931,778
(120,744 )
$
$
(50,157 )
(4,319 ) -
(2,737 ) (29,095 ) (27,507 )
- (113,815 )
$
- $ 12,105,463
Profit or Loss
Other Comprehensive Income
$- $
- 30,562 - - - -
$ 30,562 $
$- $
(2,974 ) (562 )
$ (3,536) $
Effect of Disposal of Subsidiary
-
- - - - -
(14,483 ) (14,483 )
Effect of Exchange Rate Changes
Balance, End of Year
8,401,266
1,637,713 975,324 629,442 266,521 195,197
)
- $
- $ (169,480 )
)- (36,742 )
- - (95,421 ) - - (37,304 )
- $ - $ (302,205)
(141,183 ) $ (157,486 )
d. The investment operating loss carryforward and deductible temporary differences for which no deferred income tax assets have been recognized
As of December 31, 2018 and 2017, the aggregate deductible temporary differences for which no deferred income tax assets have been recognized amounted to NT$20,060,918 thousand and NT$26,536,307 thousand, respectively.
e. Unused tax-exemption information
As of December 31, 2018, the profits generated from the following projects of TSMC are exempt from income tax for a five-year period:
Tax-exemption Period
Construction and expansion of 2008 by TSMC 2015 to 2019 Construction and expansion of 2009 by TSMC 2018 to 2022
f. The information of unrecognized deferred income tax liabilities associated with investments
As of December 31, 2018 and 2017, the aggregate taxable temporary differences associated with investments in subsidiaries not recognized as deferred income tax liabilities amounted to NT$112,893,001 thousand and NT$95,003,344 thousand, respectively.
g. Income tax examination
The tax authorities have examined income tax returns of TSMC through 2015. All investment tax credit adjustments assessed by the tax authorities have been recognized accordingly.
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