Page 239 - TSMC 2022 Annual Report

A reconciliation of income before income tax and income tax expense recognized in profit or loss was as follows:
Years Ended December 31
Income before tax
Income tax expense at the statutory rate Tax effect of adjusting items:
Nondeductible items in determining taxable income
Tax-exempt income
Additional income tax under the Alternative Minimum Tax Act 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
2022
$1,144,190,718
$ $
2021
663,126,314
134,613,312
11,261,407 (89,852,940) 32,852,688 (17,530,023)
(5,651,297) 65,693,147 207,801 152,232
66,053,180
$
231,799,774
12,286,136 (157,955,934)
61,578,020 (24,714,488)
4,654,114 127,647,622
(563,555) 206,136
127,290,203
$
$
For the years ended December 31, 2022 and 2021, the Company applied a tax rate of 20% for entities subject to the R.O.C. Income Tax Law; for other jurisdictions, taxes are calculated using the applicable tax rate for each individual jurisdiction.
b. Deferred income tax balance
The analysis of deferred income tax assets and liabilities was as follows:
December 31, 2022
Deferred income tax assets
Temporary differences
Depreciation
Refund liability
Unrealized exchange losses
Unrealized loss on inventories
Net defined benefit liability
Investment tax credits
Deferred compensation cost
Others 681,124
December 31, 2021
$ 34,720,661 5,986,173 - 898,998 1,237,086 5,621,745 373,983 315,240
$ 49,153,886
$ (706,311) (1,167,566)
$ 45,299,310 12,089,451 5,782,345 2,305,328 1,722,005 945,038 361,241
Deferred income tax liabilities
Temporary differences Unrealized exchange gains Others
$ 69,185,842
$ - (1,031,383)
$ (1,031,383) $ (1,873,877)
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