Page 214 - TSMC 2020 Annual Report

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
$
$
2020
(6,275,192) (26,537)
66,430,193 38,701 150,204
66,619,098
$
$
2019
(1,065,068)
(5,925,431) 44,346,110 196,882
(41,465)
44,501,527 (Concluded)
Years Ended December 31
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.
For other jurisdictions, taxes are calculated using the applicable tax rate for each individual jurisdiction. b. Income tax expense recognized in other comprehensive income
Years Ended December 31
2020
$ 422,010 653 $ 422,663
2019
Deferred income tax benefit (expense)
Related to remeasurement of defined benefit obligation Related to unrealized gain/loss on investments in equity
instruments at FVTOCI
$
$ (20,992)
(30,468) 9,476
c. Deferred income tax balance
The analysis of deferred income tax assets and liabilities was as follows:
December 31, 2020
Deferred income tax assets
Temporary differences
Depreciation
Refund liability
Net defined benefit liability
Unrealized loss on inventories
Deferred compensation cost
Investments in equity instruments at FVTOCI
Others 251,514
$ 25,958,184
December 31, 2019
$ 13,547,220 2,150,352 1,016,248 469,430 323,093 65,740 356,275
$ 17,928,358 (Continued)
$ 19,354,383 3,755,131 1,341,960 858,463 330,340 66,393
- 55 -
- 55 -