Page 317 - TSMC 2020 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
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
Years Ended December 31
2020
$ 582,618,942 $ 116,523,788
1,248,820 (65,988,096)
18,872,837 -
(6,144,179) -
64,513,170 70,617 149,768
64,733,555
2019
$ 388,745,219
$
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
$
$
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.
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
Years Ended December 31
2020
$ 422,010 653 $ 422,663
2019
$
$ (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
$ 24,678,225
December 31, 2019
$ 12,927,764 2,120,873 1,016,248 437,327 65,667 160,743
$ 16,728,622 (Continued)
$ 18,723,852 3,719,427 1,341,960 826,666 66,320 Others -
Depreciation
Refund liability
Net defined benefit liability
Unrealized loss on inventories
Investments in equity instruments at FVTOCI
- 158 -
- 158 -