26.  INCOME TAX  a.  The components of income taxes are as follows: b. A reconciliation between income tax expense computed by applying the statutory income tax rate of 25% for 2009, and  17% for 2010 and 2011 to income before income tax and income tax expense shown in the statements of income and  comprehensive income is as follows: Year Ended December 31, 2011 Operating Operating Costs Expenses Total NT$ NT$ NT$ (In Millions) Compensation expense  Salaries  $  12,741 $  10,895 $  23,636 Insurance  1,088 897 1,985 Pension  1,740 1,254 2,994 Other compensation  9,537 6,697 16,234 $  25,106 $  19,743 $  44,849 Depreciation expense  $  29,123 $  1,766 $  30,889 Amortization expense  1,185 215 1,400 Year Ended December 31 2009 2010 2011 NT$ NT$ NT$ (In Millions) Current $  11,644 $  9,102 $  8,547 Deferred 1,099 27 57 $  12,743 $  9,129 $  8,604 Year Ended December 31 2009 2010 2011 NT$ NT$ NT$ (In Millions) Income tax expense computed at statutory tax rate $  14,404 $  9,912 $  9,991 Permanent differences (188) (188) (773) Investment tax credits (1,425) (602) (644) 10% undistributed earning tax 7 5 10 Prior year adjustment  (196) (2) 52 Other 141 4 (32) Income tax expense $  12,743 $  9,129 $  8,604 The balances of income tax payable as of December 31, 2009, 2010 and 2011 were shown net of prepaid income tax.  F-41 PART III