Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC) the world's largest contract chipmaker, is also Taiwan's biggest corporate taxpayer for 2017.
The company paid NT$66.19 billion (US$2.2 billion) in taxes in Taiwan, which amounted to 95.1 percent of its worldwide taxes totaling NT$69.6 billion (US$2.3 billion), the Central News Agency reported.
For 2017, the company said it was subject to a tax rate of 13.4 percent. That was lower than the official corporate income tax rate of 17 percent because the chipmaker previously had applied for capital increase tax benefits valid for five years, TSMC said. Spending on investment in research and development also brought with it some concessions on the tax front, according to the CNA report.
While the chip giant paid 95.1 percent of its taxes in Taiwan, other Asian countries and North America accounted for 2.4 percent each.
Looking forward to its tax bill for 2018, TSMC said it was unlikely there would be major changes, as even though the corporate income tax rate had risen from 17 percent to 20 percent amid government taxation reforms, the company would still benefit from the five-year tax measures.
© Pakistan Press International, source Asianet-Pakistan