WEIBO Corp - 20-F filing on 2022-03-10

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Taxes

Schedule of income before income taxes


		Year Ended December 31,
		2019			2020			2021

		(In US$ thousands, except percentage)
Income before income tax expenses			602,397			375,913			550,718
Less: loss from non-China operations			(106,256)			(57,031)			(232,830)
Income from China operations			708,653			432,944			783,548
Income tax expense applicable to non-China operations			21,473			2,852			1,355
Income tax expense applicable to China operations			88,091			58,464			137,486
Total income tax expenses			109,564			61,316			138,841
Effective tax rate for China operations			12.4	%		13.5	%		17.5	%
Effective tax rate for the Group			18.2	%		16.3	%		25.2	%

Schedule of current and deferred portion of income tax expenses


		Year Ended December 31,
		2019			2020			2021

			(In US$ thousands)
Deferred tax provisions (benefits)			16,839			(15,727)			(12,478)
Current income tax expenses			92,725			77,043			151,319
Income tax expenses			109,564			61,316			138,841

Schedule of reconciliation between the statutory EIT rate and the effective tax rate for China operations


		Year Ended December 31,
		2019		2020		2021
Statutory EIT rate		25.0	%	25.0	%	25.0	%
Effect on tax holiday and preferential tax treatment⁽¹⁾		(16.1)	%	(24.1)	%	(13.1)	%
Research and development super-deduction		(1.4)	%	(3.5)	%	(7.5)	%
Non-deductible expenses and non-taxable income and others ⁽²⁾		0.4	%	(0.6)	%	9.2	%
Change in valuation allowance		2.4	%	14.9	%	0.7	%
Tax rate difference from statutory rate in other jurisdictions		7.9	%	4.6	%	10.9	%
Effective tax rate for the Group		18.2	%	16.3	%	25.2	%

(1)	Included the impact of Weibo Technology’s preferential tax treatment of “key software enterprise” status of 2018 in 2019, and 2019 in 2020, respectively, as well as preferential tax treatment benefited by certain other PRC entities.

(2)	Included the impact of uncertain tax positions recognized for 2021.

Schedule of significant components of deferred tax assets and liabilities for China operations


		As of December 31,
		2020			2021

		(In US$ thousands)
Deferred tax assets:
Net operating loss carry forwards			8,872			7,875
Valuation allowance			(8,872)			(7,875)
Depreciation, investment-related impairment, accounts receivable, accrued and other liabilities			107,892			126,753
Valuation allowance			(80,872)			(86,216)
Net deferred tax assets			27,020			40,537

Deferred tax liabilities:
Acquired intangible assets			30,999			36,471
Depreciation			1,435			1,662
Investment gain			25,496			28,454
Others			369			316
Total deferred tax liabilities			58,299			66,903