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Income Tax (Tables)
 12 Months Ended
Dec. 31, 2018
Text block [abstract]  
Summary of Major Components of Income Tax Expense

The major components of income tax were as follows:

 

    For the Year Ended December 31
    2016   2017   2018
    NT$   NT$   NT$   US$ (Note 4)
                 
Current income tax                
In respect of the current year   $ 4,177,900     $ 4,979,766     $ 5,207,309     $ 170,118  
Income tax on unappropriated earnings     829,345       1,076,353       (1,022,560 )     (33,406 )
Changes in estimate for prior years     28,160       (88,162 )     (103,822 )     (3,392 )
      5,035,405       5,967,957       4,080,927       133,320  
                                 
Deferred income tax                                
In respect of the current year     574,541       534,472       (227,327 )     (7,426 )
Effect of tax rate changes     14,184       -       657,346       21,475  
Changes in estimate for prior years     (206,788 )     52,872       5,696       186  
Effect of foreign currency exchange differences     (26,498 )     (31,698 )     (3,273 )     (107 )
      355,439       555,646       432,442       14,128  
                                 
Income tax expense recognized in profit or loss   $ 5,390,844     $ 6,523,603     $ 4,513,369     $ 147,448  
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
    2016   2017   2018
    NT$   NT$   NT$   US$ (Note 4)
                 
Profit before income tax   $ 27,968,705     $ 31,020,663     $ 31,937,678     $ 1,043,374  
                                 
Income tax expense calculated at the statutory rates   $ 8,634,187     $ 10,890,498     $ 13,540,599     $ 442,359  
Nontaxable expense (income) in determining taxable income     (34,954 )     483,715       353,019       11,533  
Tax-exempt income     (700,274 )     (623,566 )     (2,515,453 )     (82,177 )
Additional income tax on unappropriated earnings     829,345       1,076,353       (1,022,560 )     (33,406 )

    

 

 

    For the Year Ended December 31
    2016   2017   2018
    NT$   NT$   NT$   US$ (Note 4)
                 
Loss carry-forward and income tax credits currently used   $ (898,700 )   $ (1,124,043 )   $ (971,124 )   $ (31,726 )
Remeasurement of deferred income tax assets, net     (2,797,673 )     (4,131,473 )     (4,776,271 )     (156,036 )
Changes in estimate for prior periods     28,160       (88,162 )     (103,822 )     (3,392 )
Withholding tax     81,543       40,281       8,981       293  
Land value increment tax     249,210       -       -       -  
                                 
Income tax expense recognized in profit or loss   $ 5,390,844     $ 6,523,603     $ 4,513,369     $ 147,448  
Summary of Income Tax Recognized Directly in Equity
b. Income tax recognized directly in equity

 

    For the Year Ended December 31
    2016   2017   2018
    NT$   NT$   NT$   US$ (Note 4)
                 
Deferred income tax                
Related to employee share options   $ (204 )   $ 262     $ (1,099 )   $ (36 )
Summary of Income Tax Recognized in Other Comprehensive Income
c. Income tax recognized in other comprehensive income

 

    For the Year Ended December 31
    2016   2017   2018
    NT$   NT$   NT$   US$ (Note 4)
                 
Deferred income tax                
Related to remeasurement of defined benefit plans   $ 73,637     $ (51,217 )   $ 55,346     $ 1,808  
Effect of tax rate changes     -         -         70,755       2,312  
                                 
Income tax recognized in other comprehensive income   $ 73,637     $ (51,217 )   $ 126,101     $ 4,120  
Summary of Current Tax Assets and Liabilities
d. Current tax assets and liabilities

 

    December 31
    2017   2018
    NT$   NT$   US$ (Note 4)
             
Current tax assets            
Tax refund receivable   $ 28,458     $ 50,456     $ 1,648  
Prepaid income tax     232,084       473,807       15,479  
                         
    $ 260,542     $ 524,263     $ 17,127  
                         
Current tax liabilities                        
Income tax payable   $ 7,619,328     $ 6,781,136     $ 221,553  
Summary of Movements of Deferred Tax Assets and Deferred Tax Liabilities

 

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

 

For the year ended December 31, 2016

 

    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$
Deferred tax assets (liabilities)                            
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 )

 

For the year ended December 31, 2017

 

    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$
Deferred tax assets (liabilities)                            
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 )

For the year ended December 31, 2018

 

    Balance at January 1   Adjustment on initial Application of IFRS 15   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$   NT$
                                 
Deferred tax assets (liabilities)                                
Temporary differences                                
Property, plant and equipment   $ (3,879,066 )   $ -       $ (600,229 )   $ -       $ -       $ (21,146 )   $ (45,873 )   $ (4,546,314 )
Defined benefit obligation     780,240       -         (131,687 )     126,101       -         27,884       262,286       1,064,824  
FVTPL financial instruments     (104,903 )     -         284,659       -         -         (137 )     27,402       207,021  
Others     1,028,409       (97,358 )     (26,147 )     -         (1,099 )     74,327       294,540       1,272,672  
      (2,175,320 )     (97,358 )     (473,404 )     126,101       (1,099 )     80,928       538,355       (2,001,797 )
Loss carry-forward     681,441       -         (50,059 )     -         -         28,293       12,600       672,275  
Investment credits     534,213       -         91,021       -         -         5,932       -         631,166  
                                                                 
    $ (959,666 )   $ (97,358 )   $ (432,442 )   $ 126,101     $ (1,099 )   $ 115,153     $ 550,955     $ (698,356 )

 

    Balance at January 1   Adjustment on initial Application of IFRS 15   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)   US$ (Note 4)
Deferred tax assets (liabilities)                                
Temporary differences                                
Property, plant and equipment   $ (126,726 )   $ -       $ (19,609 )   $ -       $ -       $ (691 )   $ (1,499 )   $ (148,525 )
Defined benefit obligation     25,490       -         (4,302 )     4,120       -         911       8,569       34,788  
FVTPL financial instruments     (3,427 )     -         9,300       -         -         (4 )     895       6,764  
Others     33,597       (3,181 )     (854 )     -         (36 )     2,428       9,622       41,576  
      (71,066 )     (3,181 )     (15,465 )     4,120       (36 )     2,644       17,587       (65,397 )
Loss carry-forward     22,262       -         (1,635 )     -         -         924       412       21,963  
Investment credits     17,452       -         2,973       -         -         194       -         20,619  
                                                                 
    $ (31,352 )   $ (3,181 )   $ (14,127 )   $ 4,120     $ (36 )   $ 3,762     $ 17,999     $ (22,815 )

 
Summary of Unrecognized Deferred Tax Assets Related to Loss Carry-forward, Investment Credits and Deductible Temporary Differences
    December 31
    2017   2018
    NT$   NT$   US$ (Note 4)
             
Loss carry-forward   $ 542,054     $ 666,043     $ 21,759  
Deductible temporary differences     712,141       332,255       10,854  
                         
    $ 1,254,195     $ 998,298     $ 32,613  
Summary of Unused Loss Carry-forward

As of December 31, 2018, the unused loss carry-forward comprised of:

 

Expiry Year   NT$   US$
        (Note 4)
         
2019   $ 163,916     $ 5,355  
2020     290,460       9,489  

 

Expiry Year   NT$   US$
        (Note 4)
         
2021   $ 159,641     $ 5,215  
2022     94,287       3,080  
2023 and thereafter     630,015       20,582  
                 
    $ 1,338,319     $ 43,721  

Summary of Unused Investment Credits

As of December 31, 2018, unused investment credits comprised of:

 

    Remaining Creditable Amount    
Tax Credit Source   NT$   US$   Expiry Year
        (Note 4)    
             
Purchase of machinery and equipment   $ 590,694     $ 19,297     2022
Others     40,472       1,322     2023 and thereafter
                     
    $ 631,166     $ 20,619      
Summary of Projects were Exempted From Income Tax

As of December 31, 2018, 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 ASE   2016.01-2020.12
Construction and expansion of 2008 by ASE   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
Construction and expansion of 2008 by ASE Electronics Inc.   2016.01-2020.12
Construction and expansion of 2007 by SPIL   2015.01-2019.12