Income Tax Benefit

12 Months Ended

Dec. 31, 2024

29. Income tax benefit

a) Income tax benefit

Components of income tax expense:

	Year ended December 31,
	2022			2023			2024
Current income tax:
Current income tax on profits for the period	$	11,110		$	4,457		$	40,184
Income tax on unappropriated retained earnings		—			—			9,283
Prior year income tax underestimation		—			—			276,516
Total current income tax		11,110			4,457			325,983
Deferred income tax:
Relating to origination and reversal of temporary differences		(258,287	)		(595,539	)		(633,229	)
Income tax benefit	$	(247,177	)	$	(591,082	)	$	(307,246	)

b) The income tax charge relating to components of other comprehensive income is as follows:

	Year ended December 31,
	2022		2023		2024
Changes in fair value of financial assets at fair value through other comprehensive income	$	—	$	—	$	2,814

c) Reconciliation of income tax expense and the accounting profit:

	Year ended December 31,
	2022			2023			2024
Tax calculated based on profit before tax and statutory tax rate	$	(655,823	)	$	(1,108,602	)	$	(2,318,673	)
Expenses disallowed by tax regulation		67,065			78,538			1,373,430
Tax exempt income by tax regulation		(5,823	)		(8,826	)		(97,804	)
Taxable loss not recognized as deferred tax assets		369,439			447,808			884,956
Change in assessment of realization of deferred tax assets		—			—			(40,818	)
Use of loss carryforward not recognized deferred tax assets from prior years		(22,035	)		—			(394,136	)
Prior year income tax (over) underestimation		—			—			276,516
Tax on undistributed earnings		—			—			9,283
Income tax benefit	$	(247,177	)	$	(591,082	)	$	(307,246	)

Note: The basis for computing the applicable tax rate are the rates applicable in the respective countries where the Group entities operate (Taiwan: 20%, Japan: 34.59%, Hong Kong: 16.5%, Cayman: 0%).

d) The amounts of deferred tax assets or liabilities resulting from temporary differences and investment tax credits are as follows:

	2022
	January 1			Recognized in profit or loss		Business combination			Exchange differences			December 31
Deferred tax assets
Allowance for doubtful debts	$	1,840		$	16,118	$	—		$	(634	)	$	17,324
Unrealized exchange losses		—			33,234		—			(931	)		32,303
Accrued paid absences		10,519			1,211		—			(1,072	)		10,658
Total	$	12,359		$	50,563	$	—		$	(2,637	)	$	60,285

Deferred tax liabilities
Intangible assets	$	(807,893	)	$	195,457	$	(292,713	)	$	63,753		$	(841,396	)
Unrealized exchange gain		(25,552	)		12,267		—			2,177			(11,108	)
Total	$	(833,445	)	$	207,724	$	(292,713	)	$	65,930		$	(852,504	)
Information presented on statements of financial position:
Deferred tax assets	$	12,359										$	60,285
Deferred tax liabilities	$	(833,445	)									$	(852,504	)

	2023
	January 1			Recognized in profit or loss			Business combination			Exchange differences			December 31
Deferred tax assets
Allowance for doubtful debts	$	17,324		$	(162	)	$	979		$	(13	)	$	18,128
Unrealized exchange losses		32,303			(30,475	)		—			(468	)		1,360
Other long-term employee benefits		—			17,679			109,512			(1,683	)		125,508
Accrued paid absences		10,658			12,947			106,839			(1,462	)		128,982
Share based payment		—			50,506			—			773			51,279
Loss carried forward		—			122,398			163,087			(3,103	)		282,382
Deferred gain of government subsidy		—			(1,100	)		8,529			(115	)		7,314
Lease liabilities		—			19,012			3,479			(168	)		22,323
Unrealized gain in intercompany transactions by consolidation		—			(1,110	)		11,033			(151	)		9,772
Total	$	60,285		$	189,695		$	403,458		$	(6,390	)	$	647,048

Deferred tax liabilities
Intangible assets	$	(841,396	)	$	403,015		$	(10,464,889	)	$	3,481		$	(10,899,789	)
Unrealized exchange gain		(11,108	)		9,981			—			154			(973	)
Property, plant and equipment		—			3,227			(19,354	)		258			(15,869	)
Financial assets at fair value through other comprehensive income		—			—			(14,299	)		205			(14,094	)
Other non-current assets		—			(38	)		(1,832	)		27			(1,843	)
Right-of-use assets		—			(10,341	)		—			65			(10,276	)
Total	$	(852,504	)	$	405,844		$	(10,500,374	)	$	4,190		$	(10,942,844	)
Information presented on statements of financial position:
Deferred tax assets	$	60,285											$	647,048
Deferred tax liabilities	$	(852,504	)										$	(10,942,844	)

	2024
	January 1			Recognized in profit or loss			Business combination			Effect on other comprehensive income			Exchange Differences			December 31
Deferred tax assets
Allowance for doubtful debts	$	18,128		$	44,933		$	—		$	—		$	(2,216	)	$	60,845
Unrealized exchange losses		1,360			16,826			—			—			(425	)		17,761
Other long-term employee benefits		125,508			(76,351	)		—			—			(9,564	)		39,593
Accrued paid absences		128,982			15,932			—			—			(12,046	)		132,868
Share based payment		51,279			44,285			—			—			(4,144	)		91,420
Loss carried forward		282,382			(230,006	)		—			—			(19,724	)		32,652
Deferred gain of government subsidy		7,314			(1,745	)		—			—			(640	)		4,929
Lease liabilities		22,323			1,552			—			—			(2,166	)		21,709
Unrealized gain in intercompany transactions by consolidation		9,772			(1,472	)		—			—			(882	)		7,418
Provision		—			113,864			—			—			(3,506	)		110,358
Other		—			38,024			—			—			(765	)		37,259
Total	$	647,048		$	(34,158	)	$	—		$	—		$	(56,078	)	$	556,812

Deferred tax liabilities
Intangible assets	$	(10,899,789	)	$	665,916		$	(101,812	)	$	—		$	30,809		$	(10,304,876	)
Unrealized exchange gain		(973	)		(10,329	)		—			—			269			(11,033	)
Property, plant and equipment		(15,869	)		483			—			—			1,491			(13,895	)
Financial assets at fair value through other comprehensive income		(14,094	)		—			—			(2,814	)		1,425			(15,483	)
Other non-current assets		(1,843	)		1,721			—			—			122			—
Right-of-use assets		(10,276	)		9,596			—			—			680			—
Total	$	(10,942,844	)	$	667,387		$	(101,812	)	$	(2,814	)	$	34,796		$	(10,345,287	)
Information presented on statements of financial position:
Deferred tax assets	$	647,048														$	556,812
Deferred tax liabilities	$	(10,942,844	)													$	(10,345,287	)

e) Expiration dates of unused taxable losses and amounts of unrecognized deferred income tax assets are as follows:

December 31, 2022
Year incurred	Amount filed/ assessed		Unused amount		Unrecognized deferred tax assets		Expiry year
2013	$	58,807	$	58,807	$	58,807	2023
2014		395,842		395,842		395,842	2024
2015		772,710		772,710		772,710	2025
2016		703,436		702,166		702,166	2026
2017		1,435,815		1,270,740		1,270,740	2027
2018		1,038,026		973,963		973,963	2028
2019		1,020,392		938,628		938,628	2029
2020		1,397,935		1,397,935		1,397,935	2030
2021		1,444,725		1,213,442		1,213,442	2031
2022		3,386,984		1,713,738		1,713,738	2032
	$	11,654,672	$	9,437,971	$	9,437,971

December 31, 2023
Year incurred	Amount filed/ assessed		Unused amount		Unrecognized deferred tax assets		Expiry year
2014	$	395,842	$	395,842	$	395,842	2024
2015		772,710		772,710		772,710	2025
2016		702,197		702,197		702,197	2026
2017		1,270,776		1,270,776		1,270,776	2027
2018		2,343,360		1,217,336		973,999	2028
2019		1,640,432		1,541,734		1,322,884	2029
2020		1,743,853		1,743,853		1,743,853	2030
2021		3,115,008		2,343,174		2,343,174	2031
2022		3,473,641		1,692,838		1,692,838	2032
2023		7,113,019		5,796,947		5,445,297	2033
	$	22,570,838	$	17,477,407	$	16,663,570

December 31, 2024
Year incurred	Amount filed/ assessed		Unused amount		Unrecognized deferred tax assets		Expiry year
2015	$	723,694	$	723,694	$	723,694	2025
2016		857,332		857,332		857,332	2026
2017		1,424,442		1,424,442		1,424,442	2027
2018		2,384,411		1,365,260		1,270,863	2028
2019		1,598,734		1,561,769		1,561,769	2029
2020		1,952,000		1,952,000		1,952,000	2030
2021		2,418,199		1,928,952		1,928,952	2031
2022		2,821,925		577,879		577,879	2032
2023		3,997,369		1,184,498		1,184,498	2033
2024		4,377,614		4,316,177		4,316,177	2034
	$	22,555,720	$	15,892,003	$	15,797,606

f) The amounts of deductible temporary difference that are not recognized as deferred tax assets are as follows:

		December 31, 2022			December 31, 2023			December 31, 2024
Deductible temporary differences		$	9,437,971		$	20,521,572		$	21,676,130