Frontken Berhad Annual Report 2017

80 Frontken Corporation Berhad (651020-T) ANNUAL REPORT 2017 8. INCOME TAX EXPENSE (CONT’D) A reconciliation of income tax expense at the applicable statutory income tax rate to income tax expense at the effective income tax rate is as follows: The Group The Company 2017 2016 2017 2016 RM RM RM RM Profit before tax 46,147,364 33,344,738 13,008,793 6,154,262 Tax at the applicable tax rate of 24% (2016 : 24%) 11,075,367 8,002,737 3,122,110 1,477,023 Effect of different tax rates of other tax jurisdictions (3,486,645) (2,031,679) - - Tax effects of: Non-deductible expenses 2,373,685 1,290,307 998,530 988,712 Income not subject to tax (66,071) (44,140) (4,120,640) (2,465,735) Utilisation of deferred tax assets previously not recognised (547,559) (1,255,950) - - Tax incentives (250,718) (54,632) - - Income tax exemption (419,768) (271,901) - - Deferred tax assets not recognised for the year 503,609 61,977 - - Under/(Over)provision in prior years - Current tax 725,603 1,618,565 - - - Deferred tax (180,640) (1,282,306) - - Effect of share of results in associates 12,270 26,046 - - Income tax expense 9,739,133 6,059,024 - - Domestic income tax is calculated at the Malaysian statutory tax rate of 24% (2016: 24%) of the estimated assessable profit for the financial year. The taxation of other jurisdictions is calculated at the rates prevailing in the respective jurisdiction. On 21 October 2016, the Government of Malaysia announced the reduction of income tax rate from 24% to a range of 20% to 24% based on the percentage of increase in chargeable income as compared to the immediate preceding year of assessment for years of assessment 2017 and 2018. Notes To The Financial Statements (cont’d)