Income Tax (Tables)

12 Months Ended

Dec. 31, 2017

Summary of Major Components of Income Tax Expense

The major components of income tax were as follows:

	For the Year Ended December 31
	2015			2016		2017
	NT$			NT$		NT$			US$ (Note 4)

Current income tax
In respect of the current year	$	4,029,076		$	4,177,900	$	4,979,766		$	168,008
Income tax on unappropriated earnings		187,654			829,345		1,076,353			36,314
Changes in estimate for prior years		(20,719	)		28,160		(88,162	)		(2,974	)
		4,196,011			5,035,405		5,967,957			201,348

	For the Year Ended December 31
	2015			2016			2017
	NT$			NT$			NT$			US$ (Note 4)

Deferred income tax
In respect of the current year	$	190,829		$	574,541		$	534,472		$	18,032
Adjustments attributable to changes in tax rates		3,794			14,184			-			-
Changes in estimate for prior years		(20,890	)		(206,788	)		52,872			1,784
Effect of foreign currency exchange differences		(58,671	)		(26,498	)		(31,698	)		(1,070	)
		115,062			355,439			555,646			18,746

Income tax recognized in profit or loss	$	4,311,073		$	5,390,844		$	6,523,603		$	220,094

Summary of Reconciliation of Income Tax Expense

A reconciliation of income tax expense calculated at the statutory rates and income tax expense recognized in profit or loss was as follows:

	For the Year Ended December 31
	2015			2016 (Retrospectively Adjusted)			2017
	NT$			NT$			NT$			US$ (Note 4)

Profit before income tax	$	25,011,788		$	27,968,705		$	31,020,663		$	1,046,581

Income tax expense calculated at the statutory rates	$	6,307,148		$	8,634,187		$	10,890,498		$	367,426
Nontaxable expense in determining taxable income		160,530			(34,954	)		483,715			16,319
Tax-exempt income		(537,987	)		(700,274	)		(623,566	)		(21,038	)
Additional income tax on unappropriated earnings		338,142			829,345			1,076,353			36,314
Loss carry-forward and income tax credits currently used		(1,286,705	)		(898,700	)		(1,124,043	)		(37,923	)
Remeasurement of deferred income tax assets, net		(688,584	)		(2,797,673	)		(4,131,473	)		(139,389	)
Changes in estimate for prior years		(20,719	)		28,160			(88,162	)		(2,974	)
Withholding tax		39,248			81,543			40,281			1,359
Land value increment tax		-			249,210			-			-
Income tax expense recognized in profit or loss	$	4,311,073		$	5,390,844		$	6,523,603		$	220,094

Summary of Income Tax Recognized Directly in Equity

b.	Income tax recognized directly in equity

	For the Year Ended December 31
	2015			2016			2017
	NT$			NT$			NT$		US$ (Note 4)

Deferred income tax
Related to employee share options	$	(33	)	$	(204	)	$	262	$	9

Summary of Income Tax Recognized in Other Comprehensive Income

c.	Income tax recognized in other comprehensive income

	For the Year Ended December 31
	2015		2016		2017
	NT$		NT$		NT$			US$ (Note 4)

Deferred income tax
Related to remeasurement of defined benefit plans	$	11,002	$	73,637	$	(51,217	)	$	(1,728	)

Summary of Current Tax Assets and Liabilities

d.	Current tax assets and liabilities

	December 31
	2016		2017
	NT$		NT$		US$ (Note 4)

Current tax assets
Tax refund receivable	$	260,559	$	28,458	$	960
Prepaid income tax		211,193		232,084		7,830

	$	471,752	$	260,542	$	8,790

Current tax liabilities
Income tax payable	$	6,846,350	$	7,619,328	$	257,062

Summary of Movements of Deferred Tax Assets and Deferred Tax Liabilities

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

	Balance at January 1			Recognized in Profit or Loss			Recognized in Other Comprehensive Income			Recognized in Equity			Exchange Differences			Acquisitions through business combinations		Balance at December 31
	NT$			NT$			NT$			NT$			NT$			NT$		NT$

Year ended December 31, 2015

Temporary differences
Property, plant and equipment	$	(2,431,855	)	$	(1,083,273	)	$	-		$	-		$	10,670		$	-	$	(3,504,458	)
Defined benefit obligation		796,642			20,398			11,002			-			17,897			-		845,939
FVTPL financial instruments		(170,059	)		(62,152	)		-			-			13			-		(232,198	)
Others		1,166,297			229,799			-			(33	)		(11,076	)		-		1,384,987
		(638,975	)		(895,228	)		11,002			(33	)		17,504			-		(1,505,730	)
Loss carry-forward		519,898			812,217			-			-			(8,538	)		-		1,323,577
Investment credits		452,331			(32,904	)		-			-			(68,308	)		-		351,119
Others		(853	)		853			-			-			-			-		-

	$	332,401		$	(115,062	)	$	11,002		$	(33	)	$	(59,342	)	$	-	$	168,966

Year ended December 31, 2016

Temporary differences
Property, plant and equipment	$	(3,504,458	)	$	(182,291	)	$	-		$	-		$	(72,098	)	$	-	$	(3,758,847	)
Defined benefit obligation		845,939			(48,601	)		73,637			-			2,509			-		873,484
FVTPL financial instruments		(232,198	)		212,737			-			-			(1,902	)		-		(21,363	)
Others		1,384,987			(283,179	)		-			(204	)		(21,780	)		-		1,079,824
		(1,505,730	)		(301,334	)		73,637			(204	)		(93,271	)		-		(1,826,902	)
Loss carry-forward		1,323,577			(110,967	)		-			-			(91,008	)		2,939		1,124,541
Investment credits		351,119			56,862			-			-			(25,245	)		-		382,736

	$	168,966		$	(355,439	)	$	73,637		$	(204	)	$	(209,524	)	$	2,939	$	(319,625	)

Year ended December 31, 2017

Temporary differences
Property, plant and equipment	$	(3,758,847	)	$	(101,576	)	$	-		$	-		$	(18,643	)	$	-	$	(3,879,066	)
Defined benefit obligation		873,484			(26,736	)		(51,217	)		-			(15,291	)		-		780,240
FVTPL financial instruments		(21,363	)		(86,342	)		-			-			2,802			-		(104,903	)
Others		1,079,824			(22,748	)		-			262			(28,929	)		-		1,028,409
		(1,826,902	)		(237,402	)		(51,217	)		262			(60,061	)		-		(2,175,320	)
Loss carry-forward		1,124,541			(456,246	)		-			-			13,146			-		681,441
Investment credits		382,736			138,002			-			-			13,475			-		534,213

	$	(319,625	)	$	(555,646	)	$	(51,217	)	$	262		$	(33,440	)	$	-	$	(959,666	)

	Balance at January 1			Recognized in Profit or Loss			Recognized in Other Comprehensive Income			Recognized in Equity		Exchange Differences			Acquisitions through business combinations		Balance at December 31
	US$ (Note 4)			US$ (Note 4)			US$ (Note 4)			US$ (Note 4)		US$ (Note 4)			US$ (Note 4)		US$ (Note 4)

Year ended December 31, 2017

Temporary differences
Property, plant and equipment	$	(126,817	)	$	(3,427	)	$	-		$	-	$	(629	)	$	-	$	(130,873	)
Defined benefit obligation		29,470			(902	)		(1,728	)		-		(516	)		-		26,324
FVTPL financial instruments		(721	)		(2,913	)		-			-		94			-		(3,540	)
Others		36,431			(767	)		-			9		(976	)		-		34,697
		(61,637	)		(8,009	)		(1,728	)		9		(2,027	)		-		(73,392	)
Loss carry-forward		37,940			(15,393	)		-			-		444			-		22,991
Investment credits		12,913			4,656			-			-		454			-		18,023

	$	(10,784	)	$	(18,746	)	$	(1,728	)	$	9	$	(1,129	)	$	-	$	(32,378	)

Summary of Unrecognized Deferred Tax Assets Related to Loss Carry-forward, Investment Credits and Deductible Temporary Differences

Unrecognized deferred tax assets related to loss carry-forward, investment credits and deductible temporary differences were summarized as follows:

	December 31
	2016		2017
	NT$		NT$		US$ (Note 4)

Loss carry-forward	$	652,593	$	542,054	$	18,288
Investment credits		280,068		-		-
Deductible temporary differences		904,441		712,141		24,026

	$	1,837,102	$	1,254,195	$	42,314

Summary of Unused Loss Carry-forward

As of December 31, 2017, the unused loss carry-forward comprised of:

Year of Expiry	NT$		US$
			(Note 4)

2018	$	230,656	$	7,782
2019		34,981		1,180
2020		615,327		20,760
2021		164,377		5,546
2022 and thereafter		178,154		6,011

	$	1,223,495	$	41,279

Summary of Unused Investment Credits

As of December 31, 2017, unused investment credits comprised of:

	Remaining Creditable Amount
Tax Credit Source	NT$		US$		Expiry Year
			(Note 4)

Purchase of machinery and equipment	$	518,790	$	17,503	2018
Others		15,423		520	2022 and thereafter

	$	534,213	$	18,023

Summary of Projects were Exempted From Income Tax

As of December 31, 2017, profits attributable to the following expansion projects were exempted from income tax for a 5-year period:

		Tax-exemption Period

Construction and expansion of 2007 by the Company		2016.01-2020.12
Construction and expansion of 2008 by the Company		2014.01-2018.12
Construction and expansion of 2008 by ASE Test Inc.		2014.01-2018.12
Construction and expansion of 2009 by ASE Test Inc.		2018.01-2022.12
Expansion of 2008 by ASE Electronics Inc.		2016.01-2020.12