Kimlun Corporation Berhad Annual Report 2019

Annual Report 2019 Kimlun Corporation Berhad NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2019 (cont’d) 118 10. Income tax expense (cont'd) Reconciliation between income tax expense and accounting profit 2019 2018 2019 2018 RM RM RM RM Profit before tax 79,687,090 81,666,262 24,344,547 18,310,725 Taxation at Malaysian statutory tax rate of 24% (2018: 24%) 19,124,902 19,599,903 5,843,000 4,395,000 Different tax rates in other countries 1,535 1,571 - - Effect of expenses not deductible for tax purposes 2,505,471 2,444,481 197,000 168,000 Effect of income not subject to tax (224,934) (623,226) (5,746,000) (4,104,000) Utilisation of unrecognised deferred tax assets - (539,969) - - Deferred tax assets not recognised on unutilised tax losses, unabsorbed capital allowances and other temporary differences 295,175 536,280 - - Utilisation of current year's reinvestment allowances (104,918) (309,800) - - Share of tax of joint ventures 109,639 (12,007) - - (Over)/underprovision of income tax in prior years (157,479) (746,128) (624) 426 (Over)/underprovision of deferred tax in prior years (231,354) 250,049 - - Income tax expense recognised in profit or loss 21,318,037 20,601,154 293,376 459,426 The reconciliations between income tax expense and the product of accounting profit multiplied by the applicable corporate tax rate for the years ended 31 December 2019 and 2018 are as follows: Domestic income tax is calculated at the Malaysian statutory tax rate of 24% (2018: 24%) of the estimated assessable profit for the year. Group Company