HTC 2009 Annual Report Download - page 95

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In May 2009, the Legislative Yuan passed the amendment of Article 5 of the Income Tax Law, which reduces a profit-seeking enterprise’s income tax
rate from 25% to 20%, effective 2010. Deductible temporary differences and tax credit carryforwards that gave rise to deferred tax assets as of
December 31, 2008 and 2009 were as follows:
2008 2009
NT$ NT$ US$ (Note 3)
Temporary differences
Provision for loss on decline in value of inventory $ 418,861 $ 632,416 $ 19,769
Unrealized marketing expenses 1,456,074 1,716,445 53,656
Unrealized reserve for warranty expense 1,307,151 1,058,820 33,098
Capitalized expense 59,474 40,747 1,274
Unrealized royalties 1,535,925 1,691,142 52,865
Unrealized bad-debt expenses 26,503 147,309 4,605
Unrealized valuation loss on financial instruments 128,521 --
Unrealized exchange loss - 155,790 4,870
Other 11,711 43,497 1,360
Loss carryforwards 50,545 48,556 1,518
Tax credit carryforwards 2,281,856 3,157,393 98,699
Total deferred tax assets 7,276,621 8,692,115 271,714
Less: Valuation allowance ( 5,826,064 ) ( 6,772,111 ) ( 211,695 )
Total deferred tax assets, net 1,450,557 1,920,004 60,019
Deferred tax liabilities
Unrealized pension cost ( 29,353 ) ( 27,597 ) ( 863 )
Unrealized exchange gain, net ( 41,249 ) --
Unrealized valuation gain on financial instruments - ( 3,626 ) ( 113 )
Unrealized depreciation ( 6,532 ) ( 8,836 ) ( 276 )
1,373,423 1,879,945 58,767
Less: Current portion ( 550,530 ) ( 812,254 ) ( 25,391 )
Deferred tax assets - noncurrent $ 822,893 $ 1,067,691 $ 33,376
Details of the tax credit carryforwards were as follows:
Credit Grant
Year
Validity
Period
2008 2009
NT$ NT$
US$
(Note 3)
2005 2005-2009 $ 6,479 $-$-
2006 2006-2010 15,475 15,475 484
2007 2007-2011 220,270 220,249 6,885
2008 2008-2012 2,039,632 874,619 27,340
2009 2009-2013 - 2,047,050 63,990
$ 2,281,856 $ 3,157,393 $ 98,699
Details of the loss carryforwards were as follows:
Credit Grant
Year
Validity
Period
2008 2009
NT$ NT$
US$
(Note 3)
2005 2006-2015 $95$-$-
2006 2007-2016 50,703 49,635 1,552
2007 2008-2017 48,885 48,885 1,528
2008 2009-2018 102,497 102,497 3,204
2009 2010-2019 -16,519 516
$ 202,180 $ 217,536 $ 6,800
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2009
Income Tax
Expense (Benefit) Income Tax Payable
Income Tax
Receivable
Deferred Tax
Assets (Liabilities)
NT$
US$
(Note 3) NT$
US$
(Note 3) NT$
US$
(Note 3) NT$
US$
(Note 3)
HTC Corporation $ 2,603,562 $ 81,387 $ 4,152,624 $ 129,810 $ - $ - $ 1,877,341 $ 58,685
BandRich Inc. (245 ) ( 8 ) --722 - -
Communication Global Certification Inc. 664 21 - - 23 1 1,576 49
HTC Investment Corporation 141 4 - - 225 7 - -
HTC I Investment Corporation 19 1 - - 2 - - -
High Tech Computer Asia Pacific Pte. Ltd. 77 2 - - - - - -
HTC America Inc. 72,449 2,264 - - 15,074 471 26 1
HTC EUROPE CO., LTD. 77,102 2,410 96,613 3,020 - - - -
Exedea Inc. 46 1 1,215 38 - - - -
HTC NIPPON Corporation 7,354 230 - - 5,981 187 - -
HTC BRASIL 4,240 133 - - 7,846 245 - -
One & Company Design, Inc. 2,538 79 2,018 63 - - ( 8,478 ) ( 265)
HTC Corporation (Shanghai WGQ) (583 ) ( 18 ) - - 256 8 - -
HTC Belgium BAVA/SPRL 19,314 604 14,312 447 - - - -
High Tech Computer Singapore Pte. Ltd. 389 12 511 16 - - ( 328 ) ( 10)
HTC (Australia and New Zealand) Pty. Ltd. 2,295 72 2,746 86 - - 123 4
HTC India Private Limited 1,216 38 - - 25 1 - -
HTC (Thailand) Limited 725 23 449 14 - - - -
HTC Malaysia Sdn. Bhd. 669 21 417 13 - - ( 29 ) ( 1)
HTC Innovation Limited 54 2 57 2 - - - -
HTC Electronics (Shanghai) Co., Ltd. ( 10,027 ) ( 313 ) - - - - 9,714 304
$ 2,781,999 $ 86,965 $ 4,270,962 $ 133,509 $ 29,504 $ 922 $ 1,879,945 $ 58,767
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