XML 43 R29.htm IDEA: XBRL DOCUMENT
v3.22.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2021
Income Taxes |
Income Taxes | Note 22. Income Taxes The Company is incorporated in the Cayman Islands, a tax-free country; accordingly, pretax income generated by the group parent company is not subject to local income tax. Substantially all of the Company’s taxable income is derived from the operations in the ROC and, therefore, substantially all of the Company’s income tax expense attributable to income from continuing operations is incurred in the ROC. Other foreign subsidiary companies calculate income tax in accordance with local tax law and regulations. According to the amendments to the ROC Statute for Industrial Innovation in July 2019, in addition to providing 10 year extension for the existing tax credits for qualifying research and development expenses, deduction of actual investment from tax base of undistributed earning tax and tax credit for smart machinery and 5G system expenditures were added as new incentive items. Eligible investment amount applicable for deduction of tax base of undistributed earning tax is effective for undistributed earnings invested in substantive investment within 3 years after fiscal year-end. Tax credit for investment amount eligible for smart machinery limited to 5% of expenditure for the current year or 3% of expenditure within 3 consecutive year. Tax credit for smart machinery combined with R&D tax credit shall not exceed 50% of current year corporate income tax plus undistributed earnings tax payable.
| (a) | Income tax expense (benefit) recognized in profit or loss for the years ended December 31, 2019, 2020 and 2021 consists of the following:
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year ended December 31,
​ |  | 2019 | ​ | 2020 |  | 2021
​ | ​ | (in thousands)
Current tax expense |  | ​ | ​ | ​ |  |  |
Current period | ​ | $ | 1,461 | ​ | 13,599 |  | 102,297
Adjustment for prior periods | ​ | ​ | (126) | ​ | (363) |  | 12
​ | ​ | ​ | 1,335 | ​ | 13,236 |  | 102,309
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Deferred tax expense | ​ | ​ |  | ​ |  |  |
Origination and reversal of temporary differences | ​ | ​ | 247 | ​ | 370 |  | 310
Investment tax credits and operating loss carryforward | ​ | ​ | (1,166) | ​ | (1,894) |  | 8,038
​ | ​ | ​ | (919) | ​ | (1,524) |  | 8,348
Total income tax expense | ​ | $ | 416 | ​ | 11,712 |  | 110,657
​
| (b) | Income taxes expense (benefit) recognized directly in other comprehensive income for the years ended December 31, 2019, 2020 and 2021 consist of the following:
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year ended December 31,
​ |  | 2019 | ​ | 2020 |  | 2021
​ | ​ | (in thousands)
Items that will not be reclassified to profit or loss: | ​ | ​ | ​ | ​ |  | ​ |
Remeasurements of defined benefit pension plans | ​ | $ | 25 |  | (38) |  | 27
​
| (c) | Reconciliation of the expected income tax expense computed based on the ROC statutory income tax rate of 20% compared with the actual income tax expense as reported in the consolidated statements of profit or loss for the years ended December 31, 2019, 2020 and 2021 are summarized as follows:
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Years ended December 31,
​ | ​ | 2019 | ​ | 2020 | ​ | 2021
​ |  | Rate | ​ | Amount |  | Rate |  | Amount |  | Rate | ​ | Amount
​ | ​ | ​ | ​ | (in thousands) | ​ | ​ | ​ | (in thousands) | ​ | ​ | ​ | (in thousands)
Profit (loss) before income taxes |  |  | ​ | $ | (15,768) |  |  | ​ | $ | 56,872 |  |  | ​ | $ | 544,592
Income tax expense calculated at the statutory rate |  | 20.0 | % | ​ | (3,154) |  | 20.0 | % | ​ | 11,374 |  | 20.0 | % | ​ | 108,919
Tax on undistributed earnings |  | 8.0 | % | ​ | (1,261) |  | 3.0 | % | ​ | 1,727 |  | 4.2 | % | ​ | 22,648
Tax benefit resulting from setting aside legal reserve from prior year’s income | ​ | 0.3 | % | ​ | (51) | ​ | - | ​ | ​ | - | ​ | - | ​ | ​ | (267)
Tax benefit resulting from offsetting prior year’s undistributed earning tax with current year’s loss |  | 2.8 | % | ​ | (443) |  | - | ​ | ​ | - |  | - | ​ | ​ | -
Tax benefit resulting from actual investment from prior year’s undistributed earnings | ​ | - | ​ | ​ | - | ​ | - | ​ | ​ | - | ​ | - | ​ | ​ | (161)
Increase in tax credits |  | 17.1 | % | ​ | (2,698) |  | (12.1) | % | ​ | (6,895) |  | (3.3) | % | ​ | (17,934)
Effect of change of unrecognized deductible temporary differences, tax losses carryforwards and investment tax credits |  | (40.9) | % | ​ | 6,455 |  | 8.7 | % | ​ | 4,954 |  | 0.7 | % | ​ | 3,668
Net of non-taxable income and non-deductible expense |  | (2.2) | % | ​ | 343 |  | 0.2 | % | ​ | 129 |  | (2.0) | % | ​ | (10,680)
Changes in unrecognized tax benefits related to prior year tax positions, net of its impact to tax-exempted income |  | (1.2) | % | ​ | 194 |  | (1.2) | % | ​ | (709) |  | 0.5 | % | ​ | 2,763
Foreign tax rate differential |  | (3.5) | % | ​ | 548 |  | 1.5 | % | ​ | 881 |  | 0.2 | % | ​ | 837
Variance from audits, amendments and examinations of prior years’ income tax filings |  | (2.3) | % | ​ | 368 |  | (0.6) | % | ​ | (363) |  | - | ​ | ​ | 440
Others |  | (0.7) | % | ​ | 115 |  | 1.1 | % | ​ | 614 |  | - | ​ | ​ | 424
Income tax expense |  | ​ | ​ | $ | 416 |  | ​ | ​ | $ | 11,712 |  | ​ | ​ | $ | 110,657
Effective tax rate |  | (2.6) | % | ​ |  |  | 20.6 | % | ​ |  |  | 20.3 | % | ​ |
​
| (d) | As of December 31, 2020 and 2021, the components of deferred tax assets and deferred tax liabilities were as follows:
​ | ​ | ​ | ​ | ​ | ​
​ |  | December 31, |  | December 31,
​ | ​ | 2020 | ​ | 2021
​ | ​ | (in thousands)
Deferred tax assets: |  |  |  |  |
Inventory | ​ | $ | 4,426 |  | 2,955
Tax credit carryforwards | ​ |  | 7,780 |  | -
Operating loss carryforward-statutory tax | ​ |  | 1,013 |  | 755
Accrued compensated absences | ​ |  | 735 |  | 901
Allowance for sales discounts | ​ |  | 411 |  | 720
Depreciation | ​ |  | 561 |  | 601
Unrealized foreign exchange loss | ​ |  | 179 |  | -
Others | ​ |  | 634 |  | 1,259
​ | ​ | $ | 15,739 |  | 7,191
​ | ​ | ​ | ​ | ​ | ​
Deferred tax liabilities: | ​ |  | ​ |  | ​
Acquired intangible assets | ​ | $ | (1,014) |  | (756)
Remeasurement of defined benefit plans | ​ |  | (107) |  | (138)
Unrealized foreign exchange gain | ​ | ​ | (17) | ​ | (71)
​ | ​ | $ | (1,138) |  | (965)
​ As of December 31, 2021, the Company has not provided for income taxes on undistributed earnings of approximately $1,096,052 thousand of its foreign subsidiaries since the Company has specific plans to reinvest these earnings indefinitely. A deferred tax liability will be recognized when the Company can no longer demonstrate that it plans to indefinitely reinvest these undistributed earnings. This amount becomes taxable when the ultimate parent company, Himax Technologies, Inc., executes other investments, share buybacks or shareholder dividends to be funded by cash distribution by its foreign subsidiaries. It is not practicable to estimate the amount of additional taxes that might be payable on such undistributed earnings because of the complexities of the hypothetical calculation.
| (e) | Changes in deferred tax assets and liabilities were as follows:
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ | ​ |  | ​ |  | Recognized |  | ​ |  | ​ |  | Recognized |  | ​
​ | ​ | ​ | ​ | ​ | Recognized | ​ | in other | ​ | ​ | ​ | Recognized | ​ | in other | ​ | ​
​ | ​ | January 1, | ​ | in profit or | ​ | comprehensive | ​ | December | ​ | in profit or | ​ | comprehensive | ​ | December
​ | ​ | 2020 | ​ | loss | ​ | income | ​ | 31, 2020 | ​ | loss | ​ | income | ​ | 31, 2021
​ | ​ | (in thousands)
Inventory | ​ | $ | 5,089 |  | (663) |  | - |  | 4,426 |  | (1,471) |  | - |  | 2,955
Tax credit carryforwards | ​ |  | 5,645 |  | 2,135 |  | - |  | 7,780 |  | (7,780) |  | - |  | -
Operating loss carryforward | ​ |  | 1,254 |  | (241) |  | - |  | 1,013 |  | (258) |  | - |  | 755
Accrued compensated absences | ​ |  | 588 |  | 147 |  | - |  | 735 |  | 166 |  | - |  | 901
Allowance for sales discounts | ​ |  | 576 |  | (165) |  | - |  | 411 |  | 309 |  | - |  | 720
Depreciation | ​ |  | 521 |  | 40 |  | - |  | 561 |  | 40 |  | - |  | 601
Unrealized foreign exchange loss | ​ |  | 102 |  | 60 |  | - |  | 162 |  | (233) |  | - |  | (71)
Remeasurement of defined benefit plans | ​ |  | (139) |  | (6) |  | 38 |  | (107) |  | (4) |  | (27) |  | (138)
Acquired intangible assets | ​ |  | (1,255) |  | 241 |  | - |  | (1,014) |  | 258 |  | - |  | (756)
Others | ​ |  | 658 |  | (24) |  | - |  | 634 |  | 625 |  | - |  | 1,259
Total | ​ | $ | 13,039 |  | 1,524 |  | 38 |  | 14,601 |  | (8,348) |  | (27) |  | 6,226
​
| (f) | Unrecognized Deferred Tax Assets
Gross amount of deferred tax assets have not been recognized in respect of the following items.
​ | ​ | ​ | ​ | ​ | ​
​ |  | December 31, |  | December 31,
​ | ​ | 2020 | ​ | 2021
​ | ​ | (in thousands)
Unused tax credits | ​ | $ | 1,560 |  | 1,560
Unused operating loss carryforwards-statutory tax | ​ |  | 241,371 |  | 246,023
Unused operating loss carryforwards-undistributed earnings tax | ​ |  | 261,659 |  | 283,578
Others | ​ |  | 29,897 |  | 30,364
​ | ​ | $ | 534,487 |  | 561,525
​ As of December 31, 2021, the unused investment tax credits with its expiration year from 2022 to 2034 from US operations were $1,560 thousand. Tax loss carryforwards is utilized in accordance with the relevant jurisdictional tax laws and regulations. Net losses from foreign subsidiaries are approved by tax authorities in respective jurisdiction to offset future taxable profits. Under ROC Income Tax Acts, the tax loss carryforward in the preceding ten years is available to be deducted from tax income for Taiwan operations. The statutory losses would be deducted for undistributed earnings tax and were not subject to expiration for Taiwan operations. As of December 31, 2021, the expiration period for abovementioned unrecognized deferred tax assets of unused operating loss carryforwards for statutory tax were as follows:
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ | ​ |  | Unrecognized |  | ​
​ | ​ | Deductible amount | ​ | deferred tax assets | ​ | Expiration year
​ | ​ | (in thousands) | ​ | ​
Taiwan operations | ​ | $ | 103,870 | ​ | $ | 20,774 |  | 2022~2026
​ | ​ |  | 107,909 | ​ |  | 21,582 |  | 2027~2031
Hong Kong operations | ​ |  | 1,818 | ​ |  | 150 |  | Indefinitely
US operations | ​ |  | 12,451 | ​ |  | 3,510 |  | 2024~2041
Israel operations | ​ |  | 19,975 | ​ |  | 4,594 |  | Indefinitely
​ | ​ | ​ | ​ | ​ | $ | 50,610 | ​ | ​
​
| (g) | Assessments by the tax authorities
The Company’s major taxing jurisdiction is Taiwan. All Taiwan subsidiaries’ income tax returns have been examined and assessed by the ROC tax authorities through 2019. The income tax returns of 2020 for all Taiwan subsidiaries are open to examination by the ROC tax authorities. Taiwanese entities are customarily examined by the tax authorities and it is possible that a future examination will result in a positive or negative adjustment to the Company’s unrecognized tax benefits within the next 12 months; however, management is unable to estimate a range of the tax benefits or detriment as of December 31, 2021.

X
- Definition Disclosure Of Income Tax Explanatory + References No definition available. + Details
Name: | himx_DisclosureOfIncomeTaxExplanatoryAbstract
Namespace Prefix: | himx_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IAS -Number 12 -IssueDate 2021-01-01 -Section Disclosure -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=12&code=ifrs-tx-2021-en-r&doctype=Standard&dita_xref=IAS12_g79-88_TI -URIDate 2021-03-24 + Details
Name: | ifrs-full_DisclosureOfIncomeTaxExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration