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TSMC Becomes Taiwan's No.2 Taxpayer

2008/11/04 | By Ken Liu

Taipei, Nov. 4, 2008 (CENS)--Taiwan Semiconductor Manufacturing Co. (TSMC) has listed NT$10.4 billion (US$315 million at US$1:NT$33) as tax provision in the first three quarters, becoming Taiwan's second-biggest corporate taxpayer.

As many of the island's high-tech manufacturers including silicon-foundry providers like TSMC had long enjoyed the tax-rebate incentive offered by the government to help boost high-tech development on the island, TSMC's high tax payment provision has become quite notable.

Throughout the first three quarters this year, the No.1 pure foundry supplier scored NT$97.8 billion (US$2.9 billion) in pre-tax earnings, making it the most profitable listed company on the island.

Giving way to TSMC, China Steel Corp. becomes the island's No.3 taxpayer, listing NT$9.04 billion (US$273 million) as tax provision throughout the Jan.-Sept. period. Chunghwa Telecom Co., Ltd. retains the No.1 taxpayer title, listing NT$10.7 billion (US$326 million).

Chunghwa Telecom registered pre-tax earnings of NT$47.3 billion (US$1.4 billion) in the first three quarters this year. However, its tax rate is 22.28% vs. TSMC's 10.6%.

The No.4 taxpayer is Hon Hai Precision Industry Co., Ltd., listing NT$8.01 billion (US$242 million) from NT$34.8 billion (US$1.05 billion) it earned on investments in mainland China in the first three quarters.

Formosa Petrochemical Corp. of the Formosa Plastics Group (FPG) lists NT$6.45 billion (US$195 million), making it the No.5 taxpayer on the island.

Taiwanese enterprises with tax provision exceeding NT$4 billion (US$121 million) throughout the first three quarters this year include Asustek Computer, Quanta Computer, and AU Optronics. Companies listing NT$2-3 billion (US$60-90 million) on tax book include Taiwan Mobile, HTC, Far EasTone Telecom and Hann Star Display.

Companies bound to pay tax over NT$1 billion (US$30 million) include Formosa Plastics Corp., Chung Hung Steel, Compal Electronics, Foxconn Technology, MediaTek, Chi Mei Corp., Wistron Corp., Nan Ya PCB Co., and Taiwan Corporative Bank.

Making NT$4.3 billion (US$133 million) in pre-tax earnings throughout the first three quarters this year, Hann Star appropriates NT$2.89 billion (US$87 million) as tax reserves, the highest rate of all taxpayers on the island.