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
	2020			2021			2022
	NT$			NT$			NT$			US$ (Note 4)

Profit before income tax	$	35,768,798		$	80,193,769		$	81,763,628		$	2,660,711


Income tax expense calculated at the statutory rates	$	16,907,904		$	33,697,736		$	35,906,719		$	1,168,458
Nontaxable expense (income) in determining taxable income		316,619			357,936			(177,734	)		(5,784	)
Tax-exempt income		(387,212	)		(14,578,355	)		(14,789,999	)		(481,289	)
Additional income tax on unappropriated earnings		680,649			3,684,138			844,855			27,493
Income tax credits		(1,191,387	)		(1,654,821	)		(2,514,002	)		(81,809	)
The origination and reversal of temporary differences		(6,033,652	)		78,544			1,304,931			42,465
Income tax adjustments on prior years		(472,512	)		(112,527	)		(209,150	)		(6,806	)
Unrecognized deferred tax liability for temporary differences associated with investments		(2,616,917	)		(6,135,120	)		(3,523,716	)		(114,667	)
Unrecognized loss carryforwards		—			288,025			271,730			8,843
Realized investment loss on merger of subsidiary		(138,890	)		—			—			—
Withholding tax		52,296			87,175			31,900			1,038
Land value increment tax		—			117,341			—			—
Capital gains tax		—			2,113,700			—			—


Income tax expense recognized in profit or loss	$	7,116,898		$	17,943,772		$	17,145,534		$	557,941

Income tax recognized directly in equity


	For the Year Ended December 31
	2020			2021			2022
	NT$			NT$			NT$		US$ (Note 4)

Deferred income tax
Related to employee share options	$	(1,159	)	$	(9	)	$	—	$	—

Income tax recognized in other comprehensive income


	For the Year Ended December 31
	2020			2021			2022
	NT$			NT$			NT$			US$ (Note 4)

Deferred income tax
Related to remeasurement of defined benefit plans	$	114,559		$	(19,319	)	$	(208,482	)	$	(6,784	)
Unrealized loss on equity instruments at fair value through other comprehensive income		(237,460	)		(160,084	)		370,091			12,043


Income tax recognized in other comprehensive income	$	(122,901	)	$	(179,403	)	$	161,609		$	5,259

Current tax assets and liabilities


	December 31
	2021		2022
	NT$		NT$		US$ (Note 4)

Current tax assets
Tax refund receivable	$	207,272	$	623,470	$	20,289
Prepaid income tax		334,908		125,049		4,069


	$	542,180	$	748,519	$	24,358

Current tax liabilities
Income tax payable	$	16,362,350	$	18,360,792	$	597,488

Deferred tax assets and liabilities

The Group offset certain deferred tax assets and deferred tax lia

bil

ities which met the offset criteria.

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

For the year ended December 31, 202


	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		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

For the year e

nded

cem

ber 31, 2022


	Balance at January 1		Recognized in Profit or Loss			Recognized in Other Comprehensive Income			Exchange Differences		Balance at December 31
	NT$		NT$			NT$			NT$		NT$

Deferred tax assets

Temporary differences
Property, plant and equipment	$	90,977	$	40,498		$	—		$	16,953	$	148,428
Defined benefit obligation		1,188,153		(123,878	)		(208,482	)		6,641		862,434
FVTPL financial instruments		189,350		18,192			—			252		207,794
Others		2,870,714		718,909			—			179,881		3,769,504

		4,339,194		653,721			(208,482	)		203,727		4,988,160
Loss carry-forward		638,782		(166,121	)		—			22,824		495,485
Investment credits		391,034		452,656			—			14,437		858,127


	$	5,369,010	$	940,256		$	(208,482	)	$	240,988	$	6,341,772


Deferred tax liabilities

Temporary differences
Property, plant and equipment	$	5,916,744	$	63,813		$	—		$	57,701	$	6,038,258
FVTPL financial instruments		12,580		519,142			—			89		531,811
Others		1,660,873		617,767			(370,091	)		106,514		2,015,063


	$	7,590,197	$	1,200,722		$	(370,091	)	$	164,304	$	8,585,132


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

Deferred tax assets

Temporary differences
Property, plant and equipment	$	2,960	$	1,318		$	—		$	552	$	4,830
Defined benefit obligation		38,664		(4,031	)		(6,784	)		216		28,065
FVTPL financial instruments		6,162		592			—			8		6,762
Others		93,417		23,394			—			5,854		122,665

		141,203		21,273			(6,784	)		6,630		162,322
Loss carry-forward		20,787		(5,406	)		—			743		16,124
Investment credits		12,725		14,730			—			470		27,925


	$	174,715	$	30,597		$	(6,784	)	$	7,843	$	206,371


Deferred tax liabilities

Temporary differences
Property, plant and equipment	$	192,540	$	2,076		$	—		$	1,878	$	196,494
FVTPL financial instruments		409		16,894			—			3		17,306
Others		54,047		20,103			(12,043	)		3,466		65,573


	$	246,996	$	39,073		$	(12,043	)	$	5,347	$	279,373

Items for which no deferred tax assets have been recognized for loss carry-forward, investment credits and deductible temporary differences


	December 31
	2021		2022
	NT$		NT$		US$ (Note 4)

Loss carry-forward	$	1,340,849	$	1,549,286	$	50,416
Investment credits		44,244		94,932		3,089
Deductible temporary differences		241,249		273,290		8,893


	$	1,626,342	$	1,917,508	$	62,398

The unrecognized loss carry-forward will expire through 2030

Information about unused loss carry-forward, investment credits,

tax-exemption

and other tax r

eli

As of December 31, 2022, the unused loss carry-forward comprised:


Expiry Year	NT$		US$ (Note 4)

2023	$	195,332	$	6,356
2024		172,926		5,627
2025		182,921		5,953
2026		279,553		9,097
2027 and thereafter		1,214,039		39,507


	$	2,044,771	$	66,540

As of December 31, 2022, unused investment credits comprised:


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

Purchase of machinery and equipment	$	841,658	$	27,389	2023 and thereafter
Others		111,401		3,625	2024 and thereafter


	$	953,059	$	31,014

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.

Unrecognized deferred tax liabilities associated with investments

As of December 31, 2021 and 2022, the taxable temporary differences associated with the investments in subsidiaries for which no deferred tax liabilities have been recognized were NT$39,480,927 thousand and NT$48,035,856 thousand (US$1,563,158 thousand), respectively.

Income tax assessments

The tax authorities have examined income tax returns of the Co

mpa

ny and its R.O.C. subsidiaries through 2019 and 2020.