Acer 2005 Annual Report Download - page 66

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- 61 -
(c) The differences between the expected income tax expense based on the pre-tax income at
the Company’ s statutory income tax rate (25%) and the actual income tax expense reported
in the accompanying consolidated statements of income are summarized as follows:
2004 2005
NT$ NT$ US$
Expected income tax expense calculated
using the statutory tax rate
2,160,150
2,663,133
81,107
Different tax rates applied to the
Company’ s subsidiaries
633,921
330,029
10,051
Tax-exempt investment income (253,924) (483,488) (14,725)
Investment tax credits 540,184 (145,170) (4,421)
Gain on disposal of marketable securities
not subject to income tax
(1,611,090)
(1,340,876)
(40,837)
(Gain) loss on disposal of land not subject
to income tax
(40,758) 62,786 1,912
Prior year adjustments 153,107 (289,337) (8,812)
Valuation allowance for deferred tax assets (88,317) 1,441,695 43,907
Tax-exempt income from operational
headquarters
(838,590) (837,877) (25,518)
Dividend income of overseas investees 592,900 - -
10% income surtax on undistributed
earnings
27,413 350,145 10,664
Net operating loss carryforwards that
cannot be used
307,223 (27,701) (844)
Other (33,042) 463,705 14,123
Income tax expense 1,549,177 2,187,044 66,607
(d) The deferred income tax assets (liabilities) as of December 31, 2004 and 2005, were as
follows:
December 31, 2004 December 31, 2005
NT$ NT$ US$
Current:
Deferred income tax assets—current 768,613 1,553,529 47,313
Valuation allowance (168,643) (501,651) (15,278)
Net deferred income tax assets 599,970 1,051,878 32,035
Deferred income tax liabilities (15,489) (459,962) (14,008)
Non-current:
Deferred income tax asset 5,590,593 6,591,936 200,759
Valuation allowance (5,411,529) (6,520,216) (198,575)
Net deferred income tax assets 179,064 71,720 2,184
Deferred income tax assets 870,909 449,401 13,687
Deferred income tax liabilities (1,449,042) (2,150,158) (65,484)
Net deferred income tax liabilities (578,133) (1,700,757) (51,797)
Total deferred income tax assets 7,230,115 8,594,866 261,759
Total deferred income tax liabilities (1,464,531) (2,610,120) (79,492)
Total valuation allowance (5,580,172) (7,021,867) (213,853)