Frontken Berhad Annual Report 2019

85 Frontken Corporation Berhad (651020-T) ANNUAL REPORT 2019 9. 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 2019 2018 2019 2018 RM RM RM RM Profit before tax 96,261,457 75,615,413 23,786,496 17,519,528 Tax at the applicable tax rate of 24% 23,102,750 18,147,699 5,708,759 4,204,687 Effect of different tax rates of other tax jurisdictions (4,430,074) (3,679,175) - - Tax effects of: Non-deductible expenses 1,737,385 1,710,528 1,251,163 1,516,854 Income not subject to tax (86,037) (320,604) (6,959,922) (5,721,541) Utilisation of deferred tax assets previously not recognised (161,814) (41,124) - - Tax incentives - (251,734) - - Income tax exemption (88,681) (512,800) - - Taxable income subjected at regular income tax rate 102,114 - - - Deferred tax assets not recognised for the year 35,655 399,439 - - Under/(Over)provision in prior years - Current tax 1,307,583 810,652 - - - Deferred tax - (68,485) - - Effect of share of results in associates - (18,748) - - Withholding tax 514,228 2,437,333 514,228 2,437,333 Income tax expense 22,033,109 18,612,981 514,228 2,437,333 Domestic income tax is calculated at the Malaysian statutory tax rate of 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. Notes To The Financial Statements (cont’d)