Kimlun Corporation Berhad Annual Report 2020

200901023978 (867077-X) Kimlun Corporation Berhad (Incorporated in Malaysia) 10. Income tax expense (cont'd) Reconciliation between income tax expense and accounting profit 2020 2019 2020 2019 RM RM RM RM Profit before tax 15,524,362 79,687,090 17,201,166 24,344,547 Taxation at Malaysian statutory tax rate of 24% (2019: 24%) 3,725,847 19,124,902 4,128,000 5,843,000 Different tax rates in other countries 1,579 1,535 - - Effect of expenses not deductible for tax purposes 2,127,692 2,505,471 181,000 197,000 Effect of income not subject to tax (29,284) (224,934) (4,162,000) (5,746,000) Deferred tax assets not . recognised on unutilised tax losses, unabsorbed capital allowances and other temporary differences 1,984,494 295,175 - - Utilisation of current year's reinvestment allowances (70,709) (104,918) - - Share of tax of joint ventures 150,376 109,639 - - Overprovision of income tax in prior years (145,702) (157,479) (231) (624) Overprovision of deferred tax in prior years (163,936) (231,354) - - Income tax expense recognised in profit or loss 7,580,357 21,318,037 146,769 293,376 Domestic income tax is calculated at the Malaysian statutory tax rate of 24% (2019: 24%) of the estimated assessable profit for the year. Company Group 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 2020 and 2019 are as follows: - 61 - Annual Report 2020 118 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020