XML 123 R74.htm IDEA: XBRL DOCUMENT

Income Tax (Tables)

12 Months Ended

Dec. 31, 2019

The major components of income tax expense were as follows:

	Year Ended December 31
	2017			2018			2019
	NT$			NT$			NT$
	(In Millions)
Current tax
Current tax expenses recognized for the year	$	7,996		$	8,271		$	8,109
Income tax on unappropriated earnings		(60	)		(2,070	)		(20	)
Income tax adjustments on prior years		(2	)		7			(91	)
Others		10			8			12
		7,944			6,216			8,010
Deferred tax
Deferred tax expense recognized for the year		(101	)		208			(63	)
Income tax adjustments on prior years		6			19			(1	)
Change in tax rate		—			(38	)		—
		(95	)		189			(64	)
Income tax expense recognized in profit or loss	$	7,849		$	6,405		$	7,946

Reconciliation of accounting profit and income tax expense was as follows:

	Year Ended December 31
	2017			2018			2019
	NT$			NT$			NT$
	(In Millions)
Income before income tax	$	48,009		$	44,986		$	41,867
Income tax expense calculated at the statutory rate (17% in 2017, and 20% in 2018 and 2019)	$	8,162		$	8,997		$	8,373
Nondeductible income and expenses in determining taxable income		34			227			18
Unrecognized deductible temporary differences		(1	)		1			3
Unrecognized loss carryforwards		10			21			7
Tax-exempt income		(87	)		(580	)		(148	)
Additional income tax under Alternative Minimum Tax Act		—			46			—
Income tax on unappropriated earnings		(60	)		(2,070	)		(20	)
Investment credits		(212	)		(204	)		(203	)
Change in tax rate		—			(38	)		—
Effect of different tax rates of group entities operating in other jurisdictions		(2	)		(15	)		(9	)
Income tax adjustments on prior years		4			26			(92	)
Others		1			(6	)		17
Income tax expense recognized in profit or loss	$	7,849		$	6,405		$	7,946

Income tax recognized in other comprehensive income

	Year Ended December 31
	2017			2018			2019
	NT$			NT$			NT$
				(In Millions)
Deferred tax
Remeasurement on defined benefit plan	$	(344	)	$	(243	)	$	305
Change in tax rate - defined benefit plan		—			(207	)		—
Unrealized gain or loss on available-for-sale financial assets		(3	)		—			—
Total income tax expense (benefit) recognized in other comprehensive income	$	(347	)	$	(450	)	$	305

Current tax assets and liabilities

	December 31
	2018		2019
	NT$		NT$
	(In Millions)
Current tax assets
Tax refund receivable (included in other current assets - other)	$	—	$	1
Current tax liabilities
Income tax payable	$	6,221	$	5,812

Deferred income tax assets and liabilities

The movements of deferred income tax assets and liabilities were as follows:

For the year ended December 31, 2017

	January 1, 2017		Recognized in Profit or Loss			Recognized in Other Comprehensive Income		December 31, 2017
	NT$		NT$			NT$		NT$
	(In Millions)
Deferred income tax assets
Temporary differences
Defined benefit obligation	$	1,374	$	5		$	344	$	1,723
Allowance for doubtful receivables over quota		230		59			—		289
Share of profits of associates and joint ventures accounted for using equity method		330		1			—		331
Valuation loss on inventory		20		3			—		23
Deferred revenue		117		(11	)		—		106
Estimated warranty liabilities		19		3			—		22
Impairment loss on property, plant and equipment		122		(10	)		—		112
Accrued award credits liabilities		20		(5	)		—		15
Unrealized foreign exchange loss, net		—		17			—		17
Property, plant and equipment		2		—			—		2
Trade-in right		—		15			—		15
Others		34		(5	)		—		29
		2,268		72			344		2,684
Loss carryforwards		54		(8	)		—		46
	$	2,322	$	64		$	344	$	2,730

	January 1, 2017			Recognized in Profit or Loss			Recognized in Other Comprehensive Income		December 31, 2017
	NT$			NT$			NT$		NT$
	(In Millions)
Deferred income tax liabilities
Temporary differences
Defined benefit obligation	$	(1,269	)	$	4		$	—	$	(1,265	)
Land value incremental tax		(95	)		—			—		(95	)
Intangible assets		(40	)		1			—		(39	)
Deferred revenue for award credits		(46	)		17			—		(29	)
Unrealized foreign exchange gain or loss, net		(10	)		10			—		—
Valuation gain or loss on financial instruments, net		(3	)		(1	)		3		(1	)
Others		(1	)		—			—		(1	)
	$	(1,464	)	$	31		$	3	$	(1,430	)

For the year ended December 31, 2018

	January 1, 2018		Effect of Retrospective Application of IFRS 9		Recognized in Profit or Loss			Recognized in Other Comprehensive Income		December 31, 2018
	NT$		NT$		NT$			NT$		NT$
	(In Millions)
Deferred income tax assets
Temporary differences
Defined benefit obligation	$	1,723	$	—	$	134		$	450	$	2,307
Allowance for doubtful receivables over quota		289		—		146			—		435
Share of profits of associates and joint ventures accounted for using equity method		331		—		58			—		389
Valuation loss on inventory		23		—		65			—		88
Deferred revenue		106		—		5			—		111
Estimated warranty liabilities		22		—		4			—		26
Impairment loss on property, plant and equipment		112		—		(19	)		—		93
Accrued award credits liabilities		15		—		(1	)		—		14
Unrealized foreign exchange loss, net		17		—		(16	)		—		1
Property, plant and equipment		2		—	-				—		2
Trade-in right		15		—		(5	)		—		10
Others		29		—		8			—		37
		2,684		—		379			450		3,513
Loss carryforwards		46		—		(5	)		—		41
	$	2,730	$	—	$	374		$	450	$	3,554

	January 1, 2018			Effect of Retrospective Application of IFRS 9		Recognized in Profit or Loss			Recognized in Other Comprehensive Income		December 31, 2018
	NT$					NT$			NT$		NT$
	(In Millions)
Deferred income tax liabilities
Temporary differences
Defined benefit obligation	$	(1,265	)	$	—	$	(567	)	$	—	$	(1,832	)
Land value incremental tax		(95	)		—	-				—		(95	)
Intangible assets		(39	)		—		7			—		(32	)
Deferred revenue for award credits		(29	)		—		(2	)		—		(31	)
Unrealized foreign exchange gain, net		—			—		(1	)		—		(1	)
Valuation gain or loss on financial instruments, net		(1	)		1		—			—		—
Others		(1	)		—		—			—		(1	)
	$	(1,430	)	$	1	$	(563	)	$	—	$	(1,992	)

For the year ended December 31, 2019

	January 1, 2019		Effect of Retrospective Application of IFRS 16		Recognized in Profit or Loss			Recognized in Other Comprehensive Income			December 31, 2019
	NT$		NT$		NT$			NT$			NT$
	(In Millions)
Deferred income tax assets
Temporary differences
Defined benefit obligation	$	2,307	$	—	$	32		$	(305	)	$	2,034
Allowance for doubtful receivables over quota		435		—		(31	)		—			404
Share of profits of associates and joint ventures accounted for using equity method		389		—		13			—			402
Valuation loss on inventory		88		—		53			—			141
Deferred revenue		111		—		(13	)		—			98
Estimated warranty liabilities		26		—		8			—			34
Impairment loss on property, plant and equipment		93		—		(75	)		—			18
Accrued award credits liabilities		14		—		3			—			17
Unrealized foreign exchange loss, net		1		—		2			—			3
Property, plant and equipment		2		—		—			—			2
Trade-in right		10		—		(9	)		—			1
Others		37		26		14			—			77
		3,513		26		(3	)		(305	)		3,231
Loss carryforwards		41		—		(13	)		—			28
	$	3,554	$	26	$	(16	)	$	(305	)	$	3,259

	January 1, 2019			Effect of Retrospective Application of IFRS 16		Recognized in Profit or Loss		Recognized in Other Comprehensive Income		December 31, 2019
	NT$			NT$		NT$		NT$		NT$
	(In Millions)
Deferred income tax liabilities
Temporary differences
Defined benefit obligation	$	(1,832	)	$	—	$	74	$	—	$	(1,758	)
Land value incremental tax		(95	)		—	-			—		(95	)
Intangible assets		(32	)		—		3		—		(29	)
Deferred revenue for award credits		(31	)		—		2		—		(29	)
Unrealized foreign exchange gain, net		(1	)		—	-			—		(1	)
Valuation gain or loss on financial instruments, net		—			—	-			—		—
Others		(1	)		—		1		—		—
	$	(1,992	)	$	—	$	80	$	—	$	(1,912	)

Items for which no deferred income tax assets have been recognized

	December 31
	2018		2019
	NT$		NT$
	(In Millions)
Loss carryforwards
Expire in 2020	$	41	$	23
Expire in 2021		12		13
Expire in 2022		10		10
Expire in 2023		9		8
Expire in 2024		2		8
Expire in 2025		15		15
Expire in 2026		8		8
Expire in 2027		3		3
Expire in 2028		1		1
Expire in 2029		—		—
	$	101	$	89
Deductible temporary differences	$	1	$	1

As of December 31, 2019, unused loss carryforwards was as follows:

Remaining Creditable Amount		Expiry Year
NT$ (In Millions)
$	23	2020
	19	2021
	11	2022
	9	2023
	8	2024
	26	2025
	12	2026
	3	2027
	4	2028
	2	2029
$	117