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GHL Systems Berhad
(293040-D)
Annual report 2015
Notes to the Financial Statements
31 December 2015 (continued)
29. TAXATION (continued)
(a) The Malaysian income tax is calculated at the statutory tax rate of twenty-five percent (25%) (2014: 25%)
of the estimated taxable profits for the fiscal year. The Malaysian statutory tax rate will be reduced to
twenty-four percent (24%) for the fiscal year of assessment 2016 onwards. The computation of deferred
tax as at 31 December 2015 has reflected these changes.
(b) Taxation for other taxation authorities are calculated at the rates prevailing in those respective
jurisdictions.
(c) The numerical reconciliation between the taxation and the product of accounting profit multiplied by
the applicable tax rates of the Group and of the Company are as follows:
Group
Company
2015
2014
2015
2014
RM
RM
RM
RM
Tax at Malaysian statutory tax rate of 25%
(2014: 25%)
4,029,373 2,780,420 (32,759,663)
2,495,953
Tax effects in respect of:
Tax incentive
-
(1,148,647)
-
-
Non-allowable expenses
2,649,012 2,071,660 37,529,016
956,165
Non-taxable income
(1,640,240)
(571,984) (4,940,736) (4,131,717)
Deferred tax assets not recognised
596,784 1,206,992
200,125
502,423
Different tax rate in foreign jurisdictions
159,705
246,102
-
-
Reduction in deferred taxes as a result of
reduction in tax rate
4,340
-
4,531
-
5,798,974 4,584,543
33,273
(177,176)
Under provision of income tax expense
in prior years
463,690
168,048
-
-
Over provision of deferred tax in prior years
(387,535)
(2,169)
-
-
Taxation for the financial year
5,875,129 4,750,422
33,273
(177,176)
(d) Tax savings of the Group and the Company are as follows:
Group
Company
2015
2014
2015
2014
RM
RM
RM
RM
Arising from utilisation of current year
tax losses
23,754
-
-
-