D-Link 2004 Annual Report Download - page 54

Download and view the complete annual report

Please find page 54 of the 2004 D-Link annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 68

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68

26
D-LINK CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Continued)
According to the ROC Statute for Upgrading Industries, the purchase of machinery, expenditure
of research and development and training of professional personnel entitles D-link and its
subsidiaries in the ROC to investment tax credits. The capital investments in high tech companies,
significant emerging strategic industries and venture capitals also entitle D-link and its
subsidiaries in the ROC to shareholders’ investment tax credits. The total amount of investment
tax credit can be deducted from income tax payable over a period of five years, and the amount
of the credit that can be utilized per year is limited to 50% of the year’ s current income tax
payable. However, the foregoing limit does not apply to the last year of the investment tax
credit’ s expiration period.
(4) As of December 31, 2004, the unused investment tax credits and related expiration dates were as
follows:
Unused investment tax credits Expiration date
$ 3,207 2005
9,302 2006
11,829 2007
3,064 2007
12,800 2008
130,837 2008
$ 171,039
(5) According to the local income tax law, losses of D-Link Europe as assessed by the tax authorities
can be carried forward to offset future years’ taxable profits. As of December 31, 2004, the
unused loss carryforwards of D-Link Europe were $404,770 thousand with fully valuation
allowance for deferred tax assets.
(6) According to the ROC Income Tax Law, losses of Xtramus Technologies, YCI, DTVCI and
Redsonic Technology Co., Ltd. as assessed by the tax authorities can be carried forward to offset
the future 5 years’ taxable profits. As of December 31, 2004, Xtramus Technologies’ , YCI’ s,
DTVCI’ s, and Redsonic Technology Co., Ltd.’ s unused loss carryforwards and related expiration
dates were as follows:
Year Expiry year Amount
2001 (assessed) 2006 $ 12,462
2002 (assessed) 2007 37,889
2003 (reported) 2008 96,146
2004 (estimated) 2009 128,422
$ 274,919