Contents - MiTAC

2002
(in thousands of shares)
Reason for reacquisition Beginning shares Addition Reduction Ending shares
Transfer shares to employees 190 - - 190
Company’s common shares held by 15,040 3,435 516 17,959
SSDL and its subsidiaries, TFC and
So Fang Investment Co., Ltd.
(Note)
Note: The 3,435 thousand shares resulted from stock dividends and acquisitions by
SSDL’s subsidiary for employee deferred compensation plan.
A. According to the R.O.C. Securities Exchange Act, the percentage of the number of
shares of treasury stock should not exceed 10% of the total shares of common
stocks issued by the Company and the total amount of treasury stock should not
exceed the total amount of retained earnings, paid-in capital in excess of par value
of shares and realized capital reserve. As of December 31, 2003, the Company’s
treasury stock amounted to $347,450.
B. According to the R.O.C. Securities Exchange Act, the treasury stock should not be
pledged and has no shareholder rights until transferred.
C. As of December 31, 2003, the Company’s common shares held by TFC and So
Fung Investment Co., Ltd. are 15,122 thousands of shares, with average book
value of $14.793 dollars per share and market value of $14.528 dollars per share.
17) INCOME TAX
A. Income tax expense and payable:
2003 2002
Tax on pretax income at statutory tax rate $ 284,427 $ 238,060
Tax effect of permanent differences ( 65,695 ) ( 260,625 )
Investment tax credits ( 160,377 ) ( 94,170 )
Loss carryforwards 62,010 ( 84,943 )
Valuation allowance of deferred income tax assets ( 83,254 ) 218,337
Adjustment of prior year’s income tax expense ( 2,204 ) ( 8,812 )
Income tax expense 34,907 7,847
Net effect of deferred income tax assets (liabilities) ( 19,177 ) ( 17,105 )
Adjustment of prior year’s income tax expense 2,204 12,370
Prepaid income tax
Tax which is subjected to separate withholding
( 12,901 ) -
income tax and income tax paid by subsidiary
- 63 -
( 4,539 )
Translation adjustment ( 60 ) 900
Income tax payable $ 434 $ 4,012
B. The deferred income tax assets and liabilities:
December December
31, 2003 31, 2002
Deferred income tax assets – current $ 313,336 $ 236,957
Deferred income tax assets – non-current $ 484,713 $ 511,324
Deferred income tax liabilities – current $ 12,767 $ 3,253
Deferred income tax liabilities-non-current $ 684,439 $ 542,479
Valuation allowance on deferred tax assets $ 379,487 $ 462,741
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