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FINANCIAL REPORTS
140
Bursa Malaysia •
Annual Report 2015
NOTES TO THE
FINANCIAL STATEMENTS
31 DECEMBER 2015
9. Income tax expense
Group
Company
2015
2014
2015
2014
RM’000
RM’000
RM’000
RM’000
Income tax:
Current year provision
75,867
74,844
45
327
(Over)/under provision of tax in prior year
(281)
70
(327)
72
75,586
74,914
(282)
399
Deferred tax (Note 18):
Relating to origination and reversal of temporary differences
(3,587)
(5,258)
(4,351)
(2,741)
Relating to reduction in Malaysian income tax rate
823
(918)
727
(820)
Over provision of tax in prior year
(501)
(1,001)
(487)
(1,001)
(3,265)
(7,177)
(4,111)
(4,562)
Total income tax expense
72,321
67,737
(4,393)
(4,163)
The Malaysian statutory tax rate will be reduced to 24% from the current year’s rate of 25%, effective year of assessment 2016.
The reconciliation between income tax expense and the product of accounting profit multiplied by the applicable corporate tax rate for the years ended
31 December 2015 and 31 December 2014 is as follows:
Group
Company
2015
2014
2015
2014
RM’000
RM’000
RM’000
RM’000
Accounting profit before tax
278,776
271,759
184,359
170,473
Taxation at Malaysian statutory tax rate of 25%
69,694
67,940
46,090
42,618
Deferred tax not recognised in respect of current year’s tax losses
1
1
-
-
Effect of tax rate of 3% on profit before tax for subsidiary
incorporated in Labuan
(61)
(55)
-
-
Effect of expenses not deductible for tax purposes
4,397
5,670
4,245
4,949
Effect of reduction in Malaysian income tax rate
823
(918)
727
(820)
Effect of income not subject to tax
(1,751)
(1,637)
(54,641)
(49,981)
Recognition of previously unrecognised deferred tax assets
-
(1,586)
-
-
Utilisation of previously unrecognised tax losses by a subsidiary
-
(747)
-
-
(Over)/under provision of income tax in prior year
(281)
70
(327)
72
Over provision of deferred tax in prior year
(501)
(1,001)
(487)
(1,001)
Income tax expense for the year
72,321
67,737
(4,393)
(4,163)