Frontken Berhad Annual Report 2020

Annual Report 2020 91 FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) Notes to the Financial Statements (cont’d) 9. INCOME TAX EXPENSE The Group The Company 2020 2019 2020 2019 RM RM RM RM Estimated current tax payable: Malaysian: - Current year 3,127,435 4,286,075 – – - Underprovision in prior years 69,571 39,175 – – 3,197,006 4,325,250 – – Foreign: - Current year 20,596,072 16,291,730 – – - Underprovision in prior years 1,168,144 1,268,408 – – 21,764,216 17,560,138 – – Withholding tax 985,976 514,228 985,976 514,228 Real property gain tax 141,418 – – – 26,088,616 22,399,616 985,976 514,228 Deferred tax (Note 15): - Current year (153,700) (366,507) – – 25,934,916 22,033,109 985,976 514,228 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 2020 2019 2020 2019 RM RM RM RM Profit before tax 114,252,674 96,261,457 60,125,383 23,786,496 Tax at the applicable tax rate of 24% 27,420,642 23,102,750 14,430,092 5,708,759 Effect of different tax rates of other tax jurisdictions (5,557,918) (4,430,074) – – Tax effects of: Non-deductible expenses 2,081,813 1,737,385 1,403,905 1,251,163 Income not subject to tax (740,702) (86,037) (15,833,997) (6,959,922) Utilisation of deferred tax assets previously not recognised (41,000) (161,814) – – Income tax exemption (128,272) (88,681) – – Taxable income subjected at regular income tax rate 397,296 102,114 – – Deferred tax assets not recognised for the year 137,948 35,655 – – Underprovision of current tax in prior years 1,237,715 1,307,583 – – Withholding tax 985,976 514,228 985,976 514,228 Real property gain tax 141,418 – – – Income tax expense 25,934,916 22,033,109 985,976 514,228 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.