CHIPMOS TECHNOLOGIES INC (ifrs-full:DisclosureOfIncomeTaxExplanatory)

9.	*Income tax expense*

Income tax expense arising in other jurisdictions is calculated at the rates prevailing in the relevant jurisdictions, based on existing legislation, interpretations and practices in respect thereof.

The statutory tax rates for the years ended December 31, 2015, 2016 and 2017 for ChipMOS Taiwan and ChipMOS Shanghai were 17% and 25%, respectively. The statutory tax rate for the year ended December 31, 2015 for ThaiLin was 17%.

The major components of income tax expense for the years ended December 31, 2015, 2016 and 2017 are:


	2015			2016			2017		2017
	NT$000			NT$000			NT$000		US$000
Current income tax:
Current income tax on profits for the period		720,461			331,144			125,376		4,230
Income tax (benefit) on unappropriated retained earnings		198,157			(174,930	)		246,684		8,322
Prior year income tax (over) under estimation		(1,732	)		4,527			67,885		2,290

Total current income tax		916,886			160,741			439,945		14,842

Deferred income tax:
Relating to origination and reversal of temporary differences		18,969			16,379			110,542		3,730

Total deferred income tax		18,969			16,379			110,542		3,730

Income tax expense reported in the consolidated statements of comprehensive income		935,855			177,120			550,487		18,572

Unappropriated retained earnings decreased by NT$5,052,343 thousand due to the capital reorganization, and accordingly the Company did not recognize an additional 10% tax on respective unappropriated retained earnings for the year 2015. Information about the capital reorganization for the year ended December 31, 2016 is provided in Note 29.

Deferred tax charged to other comprehensive income:

2015

2016

2017

NT$000

US$000

Remeasurement of defined benefit obligations

(7,099

)

(7,375

)

8,642

292

Reconciliation of income tax expense and the accounting profit before income tax:


	2015			2016			2017			2017
	NT$000			NT$000			NT$000			US$000
Tax calculated based on profit before tax and statutory tax rate		462,692			214,550			566,649			19,118
Expenses disallowed (added) by tax regulations		5,692			(2,190	)		10,185			344
Temporary difference not recognized as deferred tax assets		6,522			1,306			(85,168	)		(2,873	)
Tax exempted (income) expenses by tax regulation		(13,483	)		12,057			(256,788	)		(8,664	)
Taxable loss not recognized as deferred tax assets		25,737			54,012			—			—
Effect of different tax rates in countries in which the Group operates		3,100			10,451			1,040			35
Withholding tax		249,170			57,337			—			—
Prior year income tax (over) under estimation		(1,732	)		4,527			67,885			2,290
Income tax (benefit) on unappropriated retained earnings		198,157			(174,930	)		246,684			8,322

Income tax expense reported in the consolidated statements of comprehensive income		935,855			177,120			550,487			18,572

The details of deferred tax assets (liabilities) are as follows:


	January 1,			Profit and (loss)			Other comprehensive income			December 31,			December 31,
	NT$000			NT$000			NT$000			NT$000			US$000
Year of 2016
Deferred tax assets
Unrealized exchange losses		(5,843	)		5,843			—			—
Inventories		14,823			11,501			—			26,324
Property, plant and equipment		3,672			77,197			—			80,869
Deferred income		50,423			(9,129	)		—			41,294
Provisions		16,473			(5,241	)		—			11,232
Net defined benefit liability, non-current		86,719			(4,007	)		7,375			90,087

Deferred tax assets		166,267			76,164			7,375			249,806

Deferred tax liabilities
Unrealized exchange gains		—			(14,155	)		—			(14,155	)
Property, plant and equipment		—			(78,388	)		—			(78,388	)

Deferred tax liabilities		—			(92,543	)		—			(92,543	)

Year of 2017
Deferred tax assets
Unrealized exchange losses		—			8,167			—			8,167			276
Inventories		26,324			(17,192	)		—			9,132			308
Property, plant and equipment		80,869			(25,375	)		—			55,494			1,872
Deferred income		41,294			(1,809	)		—			39,485			1,332
Provisions		11,232			10,411			—			21,643			730
Net defined benefit liability, non-current		90,087			(2,994	)		(8,642	)		78,451			2,647

Deferred tax assets		249,806			(28,792	)		(8,642	)		212,372			7,165

Deferred tax liabilities
Unrealized exchange gains		(14,155	)		14,155			—			—			—
Property, plant and equipment		(78,388	)		(95,905	)		—			(174,293	)		(5,880	)

Deferred tax liabilities		(92,543	)		(81,750	)		—			(174,293	)		(5,880	)

The Company has not recognized deductible and taxable temporary differences associated with investments as deferred tax assets and liabilities. As of December 31, 2017, the amounts of deductible and taxable temporary differences unrecognized as deferred tax assets and liabilities were NT$28,584 thousand (US$964 thousand) and NT$920,943 thousand (US$31,071 thousand), respectively. As of December 31, 2016, the amount of deductible temporary differences unrecognized as deferred tax assets was NT$534,568 thousand.

The Company’s income tax returns through 2015 have been assessed and approved by the Tax Authority.

The Company’s unappropriated retained earnings were all generated in and after 1998.

The balance of the imputation tax credit account was NT$1,192,119 thousand as of December 31, 2016 and the creditable tax rate was 20.48%. With the abolishment of the imputation tax system under the amendments to the Income Tax Act promulgated in February 2018, the information on the balance of the imputation tax credit account as of December 31, 2017, is no longer disclosed. Please refer to Note 37.

CHIPMOS TECHNOLOGIES INC | CIK:0001123134 |

ifrs-full:DisclosureOfIncomeTaxExplanatory