Income tax expense

(a)

Components of income tax expense:


	Year ended December 31,
	2019			2020			2021
	NT$000			NT$000			NT$000
Current income tax:
Current income tax on profits for the period		408,788			636,876			1,109,752
Income tax on unappropriated retained earnings		74,540			105,665			227,467
Prior year income tax overestimation		(5,016	)		(133,923	)		(184,284	)

Total current income tax		478,312			608,618			1,152,935

Deferred income tax:
Relating to origination and reversal of temporary differences		35,367			(14,237	)		(54,617	)

Income tax expense		513,679			594,381			1,098,318

(b)

The income tax (charge)/credit relating to components of other comprehensive income are as follows:


	Year ended December 31,
	2019			2020			2021
	NT$000			NT$000			NT$000
Unrealized (loss) gain on valuation of financial assets at fair value through other comprehensive income		(7,016	)		34,794			30,459
Remeasurement of defined benefit obligations		4,183			(10,398	)		(2,999	)

		(2,833	)		24,396			27,460

Reconciliation of income tax expense and the accounting profit:


	Year ended December 31,
	2019			2020			2021
	NT$000			NT$000			NT$000
Tax calculated based on profit before tax and statutory tax rate		606,917			595,258			1,207,605
Effects from adjustments based on regulation		(162,924	)		26,974			(152,618	)
Temporary difference not recognized as deferred tax assets		(608	)		(4	)		—
Prior year income tax overestimation		(5,016	)		(133,923	)		(184,284	)
Income tax on unappropriated retained earnings		74,540			105,665			227,467
Effect of different tax rates in countries in which the Group operates		770			411			148

Income tax expense		513,679			594,381			1,098,318

The amounts of deferred tax assets or liabilities resulting from temporary differences and investment tax credits are as follows:


	2019
	January 1			Recognized in profit or loss			Recognized in other comprehensive income			December 31
	NT$000			NT$000			NT$000			NT$000
Deferred tax assets
Loss on inventories		7,232			5,468			—			12,700
Property, plant and equipment		64,183			(25,515	)		—			38,668
Provisions		12,396			(6,796	)		—			5,600
Deferred revenue		34,156			(6,506	)		—			27,650
Net defined benefit liability		100,743			(3,948	)		(4,183	)		92,612
Unrealized exchange losses		3,575			13,721			—			17,296
Investment tax credit		4,420			(4,420	)		—			—
Others		11			15			—			26

Total		226,716			(27,981	)		(4,183	)		194,552

Deferred tax liabilities
Property, plant and equipment		(281,594	)		(7,386	)		—			(288,980	)
Financial assets at fair value through other comprehensive income		(27,165	)		—			7,016			(20,149	)

Total		(308,759	)		(7,386	)		7,016			(309,129	)

Information presented on statements of financial position
Deferred tax assets		226,716									194,552

Deferred tax liabilities		(308,759	)								(309,129	)


	2020
	January 1			Recognized in profit or loss			Recognized in other comprehensive income			December 31
	NT$000			NT$000			NT$000			NT$000
Deferred tax assets
Loss on inventories		12,700			3,263			—			15,963
Property, plant and equipment		38,668			(2,267	)		—			36,401
Provisions		5,600			(2,922	)		—			2,678
Deferred revenue		27,650			(6,506	)		—			21,144
Net defined benefit liability		92,612			(4,089	)		10,398			98,921
Unrealized exchange losses		17,296			(7,381	)		—			9,915
Others		26			643			—			669

Total		194,552			(19,259	)		10,398			185,691

Deferred tax liabilities
Property, plant and equipment		(288,980	)		33,496			—			(255,484	)
Financial assets at fair value through other comprehensive income		(20,149	)		—			(34,794	)		(54,943	)

Total		(309,129	)		33,496			(34,794	)		(310,427	)

Information presented on statements of financial position
Deferred tax assets		194,552									185,691

Deferred tax liabilities		(309,129	)								(310,427	)


	2021
	January 1			Recognized in profit or loss			Recognized in other comprehensive income			December 31
	NT$000			NT$000			NT$000			NT$000
Deferred tax assets
Loss on inventories		15,963			8,354			—			24,317
Property, plant and equipment		36,401			235			—			36,636
Provisions		2,678			171			—			2,849
Deferred revenue		21,144			(6,506	)		—			14,638
Net defined benefit liability		98,921			(4,672	)		2,999			97,248
Unrealized exchange losses		9,915			(7,754	)		—			2,161
Others		669			2,080			—			2,749

Total		185,691			(8,092	)		2,999			180,598

Deferred tax liabilities
Property, plant and equipment		(255,484	)		62,797			—			(192,687	)
Financial assets at fair value through other comprehensive income		(54,943	)		—			(30,459	)		(85,402	)
Others		—			(88	)		—			(88	)

Total		(310,427	)		62,709			(30,459	)		(278,177	)

Information presented on statements of financial position
Deferred tax assets		185,691									180,598

Deferred tax liabilities		(310,427	)								(278,177	)

The amounts of deductible temporary difference that are not recognized as deferred tax assets are as follows:


	December 31, 2020		December 31, 2021
	NT$000		NT$000
Deductible temporary differences		946,236		371,133

The Company has not recognized taxable temporary differences associated with investments as deferred tax liabilities. As of December 31, 2020 and 2021, the amounts of temporary differences not recognized as deferred tax liability were NT$45,005 thousand and NT$609,709 thousand, respectively.

The Company’s income tax returns through 2019 have been assessed and approved by the Tax Authority.

On October 31, 2016, the Company merged with its former parent company, ChipMOS TECHNOLOGIES (Bermuda) LTD. And as a result, the Company recognized its own shares originally held by former parent company as treasury stock. Subsequently, the Company deducted unappropriated retained earnings by NT$5,052,343 thousand to reflect the loss due from the cancellation of treasury stock. In January 2017, the Company has filed an application to the National Taxation Bureau of the Northern Area, Ministry of Finance to apply the accumulated deficit amount, as a deduction in the calculation of years 2015 and 2016 additional 10% tax on unappropriated retained earnings. In April and June 2020, the Company received the Notice for Assessment of Tax for the years 2015 and 2016 from the National Taxation Bureau of the Northern Area, Ministry of Finance, and the tax refund amounted to NT$138,941 thousand was received in year 2020.