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Income Tax
 12 Months Ended
Dec. 31, 2021
Text block [abstract]  
Income Tax
26.
INCOME TAX
The Company and its subsidiaries, ASE, SPIL and USIINC, have filed a consolidated tax return for corporate income tax and for unappropriated earnings.
 
  a.
Income tax recognized in profit or loss
The major components of income tax were as follows:
 
    
For the Year Ended December 31
  
    
2019
     
2020
     
2021
  
    
NT$
     
NT$
     
NT$
     
US$ (Note 4)
  
         
Current income tax
                                    
In respect of the current year
    $ 5,002,954      $ 6,807,882      $ 14,533,570      $ 523,921  
Income tax on unappropriated earnings
      19,115        680,649        3,684,138        132,810  
Changes in estimate for prior years
      (352,579 )       (472,512 )       (129,152 )       (4,656 ) 
    
 
 
     
 
 
     
 
 
     
 
 
  
       4,669,490        7,016,019        18,088,556        652,075  
    
 
 
     
 
 
     
 
 
     
 
 
  
         
Deferred income tax
                                    
In respect of the current year
      563,512        212,338        (95,906 )       (3,457 ) 
Changes in tax rates
      54,072        —          18,337        660  
Changes in estimate for prior years
      (213,758 )       (103,021 )       16,625        600  
Effect of foreign currency exchange differences
      (62,070 )       (8,438 )       (83,840 )       (3,022 ) 
    
 
 
     
 
 
     
 
 
     
 
 
  
       341,756        100,879        (144,784 )       (5,219 ) 
    
 
 
     
 
 
     
 
 
     
 
 
  
         
Income tax expense recognized in profit or loss
    $ 5,011,246      $ 7,116,898      $ 17,943,772      $ 646,856  
    
 
 
     
 
 
     
 
 
     
 
 
  
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
  
    
2019
     
2020
     
2021
  
    
NT$
     
NT$
     
NT$
     
US$ (Note 4)
  
         
Profit before income tax
    $ 23,279,811      $ 35,768,798      $ 80,193,769      $ 2,890,906  
    
 
 
     
 
 
     
 
 
     
 
 
  
         
Income tax expense calculated at the statutory rates
    $ 11,802,811      $ 16,907,904      $ 33,697,736      $ 1,214,771  
Nontaxable expense in determining taxable income
      459,133        316,619        357,936        12,903  
Tax-exempt
income
      (495,883 )       (387,212 )       (14,578,355 )       (525,536 ) 
Additional income tax on unappropriated earnings
      19,115        680,649        3,684,138        132,810  
Income tax credits
      (898,198 )       (1,191,387 )       (1,654,821 )       (59,655 ) 
The origination and reversal of temporary differences
      (3,594,774 )       (6,033,652 )      78,544        2,831  
Income tax adjustments on prior years
      (352,579 )       (472,512 )       (112,527 )       (4,056 ) 
Unrecognized deferred tax liability for temporary differences associated with investments
      (1,993,561 )       (2,616,917 )       (6,135,120 )       (221,165 ) 
Unrecognized loss carryforwards
      —          —          288,025        10,383  
Realized investment loss on merger of subsidiary
      —          (138,890 )       —          —    
Withholding tax
      65,182        52,296        87,175        3,143  
Land value increment tax
     
—  
       
—  
        117,341        4,230  
Capital gains tax
      —          —        2,113,700        76,197  
    
 
 
     
 
 
     
 
 
     
 
 
  
         
Income tax expense recognized in profit or loss
    $ 5,011,246      $ 7,116,898      $ 17,943,772      $ 646,856  
    
 
 
     
 
 
     
 
 
     
 
 
  
In July 2019, the President of the R.O.C. announced the amendments to the Statute for Industrial Innovation, which stipulate that the amounts of unappropriated earnings in 2018 and thereafter that are reinvested in the construction or purchase of certain assets or technologies are allowed as deduction when computing the income tax on unappropriated earnings. When calculating the tax on unappropriated earnings, the Group only deducts the amount of the unappropriated earnings that has been reinvested in capital expenditure.
In addition, in accordance with Rule No.10904558730 issued by the Ministry of Finance of Taiwan, the Group has deducted the amount of dividends distributed in 2020 attributable to the increase in the retained earnings as of January 1, 2018 as a result of initial adoption of IFRS 9 and IFRS 15 when calculating the tax on unappropriated earnings for 2018.
 
  b.
Income tax recognized directly in equity
 
                                                                                                     
    
For the Year Ended December 31
  
    
2019
     
2020
     
2021
  
    
NT$
     
NT$
     
NT$
     
US$ (Note 4)
  
         
Deferred income tax
                                    
Related to employee share options
   
$
1,404
 
   
$
(1,159
) 
   
$
(9
) 
   
$
(0
) 
    
 
 
     
 
 
     
 
 
     
 
 
  
 
  c.
Income tax recognized in other comprehensive income
 
                                                                                                     
    
For the Year Ended December 31
  
    
2019
     
2020
     
2021
  
    
NT$
     
NT$
     
NT$
     
US$ (Note 4)
  
         
Deferred income tax
                                    
Related to remeasurement of defined benefit plans
   
$
74,308
 
   
$
114,559
 
   
$
(19,319
) 
   
$
(696
) 
Unrealized loss on equity instruments at fair value through other comprehensive income
   
 
(78,124
) 
   
 
(237,460
) 
   
 
(160,084
) 
   
 
(5,771
) 
    
 
 
     
 
 
     
 
 
     
 
 
  
         
Income tax recognized in other comprehensive income
   
$
(3,816
) 
   
$
(122,901
) 
   
$
(179,403
) 
   
$
(6,467
) 
    
 
 
     
 
 
     
 
 
     
 
 
  
 
  d.
Current tax assets and liabilities
 
    
December 31
  
    
2020
     
2021
  
    
NT$
     
NT$
     
US$ (Note 4)
  
       
Current tax assets
                           
Tax refund receivable
    $ 303,265      $ 207,272      $ 7,472  
Prepaid income tax
      399,555        334,908        12,073  
    
 
 
     
 
 
     
 
 
  
       
     $ 702,820      $ 542,180      $ 19,545  
    
 
 
     
 
 
     
 
 
  
       
Current tax liabilities
                           
Income tax payable
    $ 6,514,502      $ 16,362,350      $ 589,847  
    
 
 
     
 
 
     
 
 
  
 
  e.
Deferred tax assets and liabilities
The Group offset certain deferred tax assets and deferred tax liabilities which met the offset criteria.
 
 
  
The movements of deferred tax assets and deferred tax liabilities were as follows: 
 
                  
                  
                  
                  
                  
                  
                  
For the year ended December 31, 2019
 
 
 
 
  
 
 
 
 
 
 
 
 
  
 
 
 
  
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
  
  
 
  
 
 
  
Temporary differences
  
  
 
  
 
 
  
Property, plant and equipment
    $ 689,790     $ (119,972 )    $ —       $ —       $ (25,023 )    $ 49     $ 544,844  
Defined benefit obligation
      1,064,824       (57,746 )      74,308       —         (2,803 )      —         1,078,583  
FVTPL financial instruments
      211,556       47,991       —         —         (40 )      —         259,507  
Others
      1,838,746       (84,377 )      —         1,160       (24,906 )      14,326       1,744,949  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
       3,804,916       (214,104 )      74,308       1,160       (52,772 )      14,375       3,627,883  
Loss carry-forward
      672,275       (166,128 )      —         —         (12,203 )      48,837       542,781  
Investment credits
      631,166       (86,722 )      —         —         (7,404 )      —         537,040  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
               
     $ 5,108,357     $ (466,954 )    $ 74,308     $ 1,160     $ (72,379 )    $ 63,212     $ 4,707,704  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
               
Deferred tax liabilities
                                                         
               
Temporary differences
                                                         
Property, plant and equipment
    $ 5,236,104     $ (39,379 )    $ —       $ —       $ (7,074 )    $ 16,966     $ 5,206,617  
FVTPL financial instruments
      4,535       4,706       —         —         (49 )      —         9,192  
Others
      566,074       (90,524 )      78,124       (244 )      (3,144 )      6,142       556,428  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
     $ 5,806,713     $ (125,197 )    $ 78,124     $ (244 )    $ (10,267 )    $ 23,108     $ 5,772,237  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
                   
                   
                   
                   
                   
                   
                   
                   
For the year ended December 31, 2020 (retrospectively adjusted)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
Balance at
January 1
 
 
Recognized in
Profit or Loss
 
 
Recognized

in Other
Comprehensive
Income
 
 
Recognized

in Equity
 
 
Exchange
Differences
 
 
Acquisitions
through
Business
Combinations
 
 
Disposal of
Subsidiaries
 
 
Balance at
December 31
 
 
  
NT$
 
 
NT$
 
 
NT$
 
 
NT$
 
 
NT$
 
 
NT$
 
 
NT$
 
 
NT$
 
Deferred tax assets
  
 
 
 
 
 
 
 
Temporary differences
  
 
 
 
 
 
 
 
Property, plant and equipment
   
$
544,844
 
  
$
4,632
 
  
$
—  
 
  
$
—  
 
  
$
12,435
 
  
$
81,773
 
  
$
(13,982
) 
  
$
629,702
 
Defined benefit obligation
   
 
1,078,583
 
  
 
(36,633
) 
  
 
114,559
 
  
 
—  
 
  
 
1,005
 
  
 
212,941
 
  
 
—  
 
  
 
1,370,455
 
FVTPL financial instruments
   
 
259,507
 
  
 
(138,045
) 
  
 
—  
 
  
 
—  
 
  
 
(7
) 
  
 
2,085
 
  
 
(11,281
) 
  
 
112,259
 
Others
   
 
1,744,949
 
  
 
679,197
 
  
 
—  
 
  
 
(999
) 
  
 
(45,169
) 
  
 
150,291
 
  
 
(120,359
) 
  
 
2,407,910
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
    
 
3,627,883
 
  
 
509,151
 
  
 
114,559
 
  
 
(999
) 
  
 
(31,736
) 
  
 
447,090
 
  
 
(145,622
) 
  
 
4,520,326
 
Loss carry-forward
   
 
542,781
 
  
 
(44,651
) 
  
 
—  
 
  
 
—  
 
  
 
(915
) 
  
 
183,045
 
  
 
(152,594
) 
  
 
527,666
 
Investment credits
   
 
537,040
 
  
 
(86,100
) 
  
 
—  
 
  
 
—  
 
  
 
(21,559
) 
  
 
—  
 
  
 
—  
 
  
 
429,381
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
                 
    
$
4,707,704
 
  
$
378,400
 
  
$
114,559
 
  
$
(999
) 
  
$
(54,210
) 
  
$
630,135
 
  
$
(298,216
) 
  
$
5,477,373
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
                 
Deferred tax liabilities
                                                                 
                 
Temporary differences
                                                                 
Property, plant and equipment
   
$
5,206,617
 
  
$
427,465
 
  
$
—  
 
  
$
—  
 
  
$
(29,248
) 
  
$
375,553
 
  
$
—  
 
  
$
5,980,387
 
FVTPL financial instruments
   
 
9,192
 
  
 
(2,942
) 
  
 
—  
 
  
 
—  
 
  
 
67
 
  
 
—  
 
  
 
—  
 
  
 
6,317
 
Others
   
 
556,428
 
  
 
54,755
 
  
 
237,460
 
  
 
160
 
  
 
(1,060
) 
  
 
287,375
 
  
 
(795
) 
  
 
1,134,323
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
    
$
5,772,237
 
  
$
479,278
 
  
$
237,460
 
  
$
160
 
  
$
(30,241
) 
  
$
662,928
 
  
$
(795
) 
  
$
7,121,027
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
                   
                   
                   
                   
                   
                   
                   
For the year ended December 31, 2021
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
Balance at
January 1

(retrospectively
adjusted)
 
  
Recognized in
Profit or Loss
 
 
Recognized

in Other
Comprehensive
Income
 
 
Recognized

in Equity
 
 
Exchange
Differences
 
 
Disposal of
Subsidiaries
 
 
Balance at
December 31
 
 
  
NT$
 
  
NT$
 
 
NT$
 
 
NT$
 
 
NT$
 
 
NT$
 
 
NT$
 
Deferred tax assets
  
  
 
 
 
 
 
Temporary differences
  
  
 
 
 
 
 
Property, plant and equipment
   
$
629,702
 
   
$
(186,443
) 
  
$
—  
 
  
$
—  
 
  
$
(7,178
) 
  
$
(345,104
) 
  
$
90,977
 
Defined benefit obligation
   
 
1,370,455
 
   
 
(115,707
) 
  
 
(19,319
) 
  
 
—  
 
  
 
(47,276
) 
  
 
—  
 
  
 
1,188,153
 
FVTPL financial instruments
   
 
112,259
 
   
 
77,593
 
  
 
—  
 
  
 
—  
 
  
 
(502
) 
  
 
—  
 
  
 
189,350
 
Others
   
 
2,407,910
 
   
 
679,492
 
  
 
—  
 
  
 
(7
) 
  
 
52,399
 
  
 
(269,080
) 
  
 
2,870,714
 
    
 
 
     
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
    
 
4,520,326
 
   
 
454,935
 
  
 
(19,319
) 
  
 
(7
) 
  
 
(2,557
) 
  
 
(614,184
) 
  
 
4,339,194
 
Loss carry-forward
   
 
527,666
 
   
 
187,981
 
  
 
—  
 
  
 
—  
 
  
 
(31,077
) 
  
 
(45,788
) 
  
 
638,782
 
Investment credits
   
 
429,381
 
   
 
(15,549
) 
  
 
—  
 
  
 
—  
 
  
 
(22,798
) 
  
 
—  
 
  
 
391,034
 
    
 
 
     
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
               
    
$
5,477,373
 
   
$
627,367
 
  
$
(19,319
) 
  
$
(7
) 
  
$
(56,432
) 
  
$
(659,972
) 
  
$
5,369,010
 
    
 
 
     
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
               
Deferred tax liabilities
                                                          
               
Temporary differences
                                                          
Property, plant and equipment
   
$
5,980,387
 
   
$
165,628
 
  
$
—  
 
  
$
—  
 
  
$
(42,437
) 
  
$
(186,834
) 
  
$
5,916,744
 
FVTPL financial instruments
   
 
6,317
 
   
 
6,274
 
  
 
—  
 
  
 
—  
 
  
 
(11
) 
  
 
—  
 
  
 
12,580
 
Others
   
 
1,134,323
 
   
 
310,681
 
  
 
160,084
 
  
 
2
 
  
 
69,848
 
  
 
(14,065
) 
  
 
1,660,873
 
    
 
 
     
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
    
$
7,121,027
 
   
$
482,583
 
  
$
160,084
 
  
$
2
 
  
$
27,400
 
  
$
(200,899
) 
  
$
7,590,197
 
    
 
 
     
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
                   
                   
                   
                   
                   
                   
                   
 
 
Balance at
January 1

(retrospectively

adjusted)
 
 
Recognized in
Profit or Loss
 
 
Recognized

in Other
Comprehensive
Income
 
 
Recognized

in Equity
 
 
Exchange
Differences
 
 
Disposal of
Subsidiaries
 
 
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)
 
Deferred tax assets
 
 
 
 
 
 
 
Temporary differences
 
 
 
 
 
 
 
Property, plant and equipment
  
$
22,700
 
  
$
(6,721
) 
  
$
—  
 
  
$
—  
 
  
$
(259
) 
  
$
(12,441
) 
  
$
3,279
 
Defined benefit obligation
  
 
49,404
 
  
 
(4,171
) 
  
 
(696
) 
  
 
—  
 
  
 
(1,704
) 
  
 
—  
 
  
 
42,833
 
FVTPL financial instruments
  
 
4,047
 
  
 
2,797
 
  
 
—  
 
  
 
—  
 
  
 
(18
) 
  
 
—  
 
  
 
6,826
 
Others
  
 
86,803
 
  
 
24,495
 
  
 
—  
 
  
 
(0
) 
  
 
1,889
 
  
 
(9,700
) 
  
 
103,487
 
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
   
 
162,954
 
  
 
16,400
 
  
 
(696
) 
  
 
(0
) 
  
 
(92
) 
  
 
(22,141
) 
  
 
156,425
 
Loss carry-forward
  
 
19,022
 
  
 
6,777
 
  
 
—  
 
  
 
—  
 
  
 
(1,121
) 
  
 
(1,651
) 
  
 
23,027
 
Investment credits
  
 
15,479
 
  
 
(561
) 
  
 
—  
 
  
 
—  
 
  
 
(822
) 
  
 
—  
 
  
 
14,096
 
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
               
   
$
197,455
 
  
$
22,616
 
  
$
(696
) 
  
$
(0
) 
  
$
(2,035
) 
  
$
(23,792
) 
  
$
193,548
 
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
               
Deferred tax liabilities
                                                        
               
Temporary differences
                                                        
Property, plant and equipment
  
$
215,587
 
  
$
5,971
 
  
$
—  
 
  
$
—  
 
  
$
(1,530
) 
  
$
(6,735
) 
  
$
213,293
 
FVTPL financial instruments
  
 
228
 
  
 
226
 
  
 
—  
 
  
 
—  
 
  
 
(1
) 
  
 
—  
 
  
 
453
 
Others
  
 
40,891
 
  
 
11,200
 
  
 
5,771
 
  
 
0
 
  
 
2,518
 
  
 
(507
) 
  
 
59,873
 
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
   
$
256,706
 
  
$
17,397
 
  
$
5,771
 
  
$
0
 
  
$
987
 
  
$
(7,242
) 
  
$
273,619
 
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
  f.
Items for which no deferred tax assets have been recognized for loss carry-forward, investment credits and deductible temporary differences
 
    
December 31
  
    
2020
     
2021
  
    
NT$
     
NT$
     
US$ (Note 4)
  
       
Loss carry-forward
    $ 1,497,056      $ 1,340,849      $ 48,336  
Investment credits
      49,611        44,244        1,595  
Deductible temporary differences
      377,242        241,249        8,697  
    
 
 
     
 
 
     
 
 
  
       
     $ 1,923,909      $ 1,626,342      $ 58,628  
    
 
 
     
 
 
     
 
 
  
The unrecognized loss carry-forward will expire through 2030.
 
  g.
Information about unused loss carry-forward, unused investment credits,
tax-exemption
and other tax relief
As of December 31, 2021, the unused loss carry-forward comprised:
 
Expiry Year
   
NT$
     
US$
  
           
(Note 4)
  
     
2022
    $ 243,136      $ 8,765  
2023
      192,254        6,930  
2024
      171,664        6,188  
2025
      185,524        6,688  
2026 and thereafter
      1,187,051        42,792  
    
 
 
     
 
 
  
     
     $ 1,979,629      $ 71,363  
    
 
 
     
 
 
  
As of December 31, 2021, unused investment credits comprised:
 
Tax Credit Source
   
Remaining Creditable Amount
     
Expiry Year
    
NT$
     
US$
       
           
(Note 4)
       
       
Purchase of machinery and equipment
    $ 370,360      $ 13,351      2026
Others
      64,918        2,340      2026 and thereafter
    
 
 
     
 
 
       
       
     $ 435,278      $ 15,691       
    
 
 
     
 
 
       
 
As of December 31, 2021, profits attributable to the following expansion project is exempted from income tax for a
5-year
period:
 
    
Tax-exemption Period
   
Construction and expansion of ASE Test Inc. in 2009
   
2018.01-2022.12
Some China subsidiaries qualified as high technology enterprises were entitled to a reduced income tax rate of 15% and were eligible to deduct certain times of research and development expenses from their taxable income.
 
  h.
Unrecognized deferred tax liabilities associated with investments
As of December 31, 2020 and 2021, the taxable temporary differences associated with the investments in subsidiaries for which no deferred tax liabilities have been recognized were NT$33,474,725 thousand and NT$39,480,927 thousand (US$1,423,249 thousand), respectively.
 
  i.
Income tax assessments
The tax authorities have examined income tax returns of the Company and its R.O.C. subsidiaries through 2018 and 2019.