Page 302 - TSMC 2019 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
2019
$ 388,745,219
2018
$ 396,198,153
Years Ended December 31
$
77,749,044
(4,124,417) (39,808,121)
10,367,916 5,903,794 -
(1,062,618) (5,903,794)
43,121,804 224,691 135,056
43,481,551
$
79,239,631
2,636,232 (54,234,074)
21,455,854 7,420,479
(1,466,706) (3,163,687) (6,006,875)
45,880,854 (963,356)
149,771 45,067,269
$
$
Under the amendment to the R.O.C Statute of Industrial Innovation in 2019, the amounts of unappropriated earnings in 2018 and thereafter used for building or purchasing specific assets or technologies can qualify for deduction when computing the income tax on unappropriated earnings.
In 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%.
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
Years Ended December 31
2019
$ (30,468)
9,476 -
$ (20,992)
2018
$ 103,339
91,828 562
$ 195,729
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