Page 344 - 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
$ 1,140,673,816
$ $
2021
660,502,191
132,100,438
11,605,518 (89,852,940) 32,852,688 (17,433,690)
(5,621,745) 63,650,269 160,565 151,344
63,962,178
$
228,134,763
12,804,635 (157,955,934)
61,578,020 (24,810,515)
4,676,707 124,427,676
(489,638) 205,529
124,143,567
$
$
For the years ended December 31, 2022 and 2021, the Company applied a tax rate of 20% subject to the R.O.C. Income Tax Law.
b. Deferred income tax balance
The analysis of deferred income tax assets and liabilities was as follows:
Deferred income tax assets Temporary differences
Depreciation
Refund liability
Unrealized exchange losses
Unrealized loss on inventories
Net defined benefit liability
Investment tax credits
Investments in equity instruments at FVTOCI
Deferred income tax liabilities Temporary differences
Unrealized exchange gains Others
December 31, 2022
$ 44,989,153 12,002,094 5,779,739 2,260,011 1,722,005 945,038 10,021
$ 67,708,061
December 31, 2021
$ 34,146,437 5,903,698 - 861,924 1,237,086 5,621,745 10,100
$ 47,780,990
$ $
- (908,273)
(908,273)
$ $
(706,311) (1,142,655)
(1,848,966)
- 158 -
- 158 -