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19. INCOME TAX EXPENSE AND DEFERRED INCOME TAX ASSETS:
Income tax expense in 2004 and 2003 is computed as follows:
The difference between income before tax in financial accounting and taxable income pursuant to Corporate Income Tax Law of Korea is as follows:
The changes in accumulated temporary difference in 2004 and 2003 and deferred incom e tax assets as of December 31, 2004 and 2003 are computed as follow s:
The accum ulated temporary differences as of December 31, 2004 and 2003 do not include the tem porary differences of ￦261,001 million (US$250,049 thousand)
and ￦272,036 million (US$260,621 thousand) for the gain on revaluation of land, which may not be disposed of in the near future.
When each tem porary difference reverses in the future, it will result in a decrease (increase) of taxable income and income tax payable. Deferred incom e tax assets
are recognized only when it is probable that the differences will be realized in the future.
Effective tax rate of 27.5% including resident tax surcharges is applied to temporary differences expected to be realized after December 31, 2004 in accordance with
the change in corporate tax rate announced on December 30, 2003.
Notes to Non-Consolidated
Financial Statements As of December 31, 2004 and 2003
86
KIA Motors_2004 Annual Report
114,226
70,456
(45,782)
138,900
￦
￦
2004Description 2003 2004 2003
159,178
28,538
(12,680)
175,036
￦
￦
109,433
67,500
(43,861)
133,072
＄
＄
152,499
27,340
(12,148)
167,691
＄
＄
Income tax currently payable
Changes in deferred incom e taxes due to:
Temporary differences
Tax credit carry forward
Income tax expense
Korean won
(In millions) U.S. dollars (Note 2)
(In thousands)
829,469
3,820
(202,579)
19,157
649,867
￦
￦
2004Description 2003 2004 2003
944,429
5,385
(44,067)
594
906,341
￦
￦
794,663
3,660
(194,078)
18,353
622,598
＄
＄
904,799
5,159
(42,218)
569
868,309
＄
＄
Income before tax
Permanent differences
Temporary differences
Other adjustm ents
Taxable income
Korean won
(In millions) U.S. dollars (Note 2)
(In thousands)
1,390,113
(202,579)
1,187,534
27.50%
326,572
202,873
529,445
￦
￦
￦
2004Description 2003 2004 2003
1,434,180
(44,067)
1,390,113
29.7/27.5
397,028
157,091
554,119
￦
￦
￦
1,331,781
(194,078)
1,137,703
27.50%
312,868
194,360
507,228
＄
＄
＄
1,373,999
(42,218)
1,331,781
29.7/27.5
380,368
150,499
530,867
＄
＄
＄
Accumulated temporary difference
Beginning of period, net
Changes in the current year, net
End of period, net
Statutory tax rate (%)
Tax credit carry forward
Deferred income tax assets
Korean won
(In millions) U.S. dollars (Note 2)
(In thousands)