Asus 2011 Annual Report Download - page 179

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175
~47~
(21) Income tax
A. According to the amended tax law issued on May 27, 2009, the statutory income tax rate was
reduced from 25% to 20%, effective January 1, 2010. However, further amendment of this
tax law was made and announced on June 15, 2010, under which, the statutory income tax
rate has been reduced further to 17%. The Company and domestic subsidiaries are subject to
income tax rate at a statutory rate of 17% for the years ended December 31, 2011 and 2010.
The Company and domestic subsidiaries are also subject to the “Income Basic Tax Act” to
calculate income tax. The components of income tax expense of the Group for the years
ended December 31, 2011 and 2010 are as follows:
2011/1/1~12/31 2010/1/1~12/31
Current income tax expense
2,450,223
$
3,443,530
$
10% additional income tax on
485,364
218,914
unappropriated earnings
Investment tax credits 19,207)( 206,028)(
2,916,380 3,456,416
Deferred income tax expense (benefit):
Decrease in investment tax credits
157,535
334,567
(Increase) decrease in unrealized sales profit on
inter-affiliate accounts
239,057)( 3,315
Decrease (increase) in unrealized purchase
discounts
125,253 241,628)(
Increase in unrealized accrued expenses 68,237)( 578,212)(
Decrease in allowance for decline in value
of inventories
40,948 3,913
Increase in investment income under
the equity method
824,806 963,980
Effect of change in income tax rate
836
4,169
Net change in deferred income tax assets 235,910)( 335,415)(
Others 235,721)( 224,974)(
370,453 70,285)(
Income tax expense 3,286,833$ 3,386,131$