Al-`Aqar Healthcare REIT Annual Report 2019

06 FINANCIAL STATEMENT 136 Notes To The Financial Statements For The Financial Year Ended 31 December 2019 (Continued) Reconciliation between tax and accounting profit A reconciliation of tax applicable to profit before tax at the statutory income tax rate to tax at the effective income tax rate of the Group and of the Fund are as follows: The Group The Fund 2019 2018 2019 2018 RM RM RM RM Profit before tax 76,148,013 92,291,662 73,770,982 83,111,785 Tax at Malaysian statutory tax rate of 24% 18,275,523 22,149,999 17,705,036 19,946,828 Different tax rates in other countries (193,260) (388,105) - - Adjustments: Non-deductible expenses 1,211,963 1,025,004 1,663,018 2,297,445 Income not subject to tax (6,734,515) (10,062,467) (6,700,780) (10,021,606) Income exempted from tax (12,573,435) (11,806,876) (12,667,274) (12,222,667) Overprovision of current tax in previous years - (347) - (347) Tax recognised in profit or loss (13,724) 917,208 - (347) Pursuant to the Section 61A of the Income Tax Act 1967 (ITA), where 90% or more of the total income of the unit trust is distributed to the unitholders, the total income of the unit trust for that year of assessment shall be exempted from tax. The Manager also expects to distribute the net income within two months from the end of each financial year and accordingly, no estimated current tax payable is required to be provided in the financial statements. Taxation of the Unitholders Pursuant to Section 109D(2) of the Malaysian Income Tax Act 1967, where 90% or more of the Real Estate Investment Trust’s (“REIT”) total taxable income is distributed by the REIT, distributions to unitholders (other than resident corporate investors) will be subject to tax based on a withholding tax mechanism at the following rates: Unitholders Tax rate Individuals and all other non-corporate investors such as institutional investors 10% Non-resident corporate investors 24% Resident corporate investors are required to report the distributions in their normal corporate tax return and subject to the normal corporate tax rate of 24%. 8. TAX (CONTINUED)