KUB Malaysia Berhad Annual Report 2021

12. TAXATION Major components of income tax expense The major components of income tax expense for the period ended 30 June 2021 and year ended 31 December 2019 are as follows: Group Company 1.1.2020 to 1.1.2019 to 1.1.2020 to 1.1.2019 to 30.6.2021 31.12.2019 30.6.2021 31.12.2019 (18 months) (12 months) (18 months) (12 months) RM’000 RM’000 RM’000 RM’000 Estimated income tax: - Current period/year 6,789 3,480 - - - Under/(Over) provision in prior years 10 (2,047) - - 6,799 1,433 - - Deferred tax (Note 28) - Origination of temporary differences 2,435 1,393 - - - Under/(Over)provision in prior years 78 (722) - - 2,513 671 - - Total 9,312 2,104 - - The numerical reconciliations of income tax expense applicable to profit before tax at the statutory income tax rate to income tax expense at the effective income tax rate is as follows: Group Company 1.1.2020 to 1.1.2019 to 1.1.2020 to 1.1.2019 to 30.6.2021 31.12.2019 30.6.2021 31.12.2019 (18 months) (12 months) (18 months) (12 months) RM’000 RM’000 RM’000 RM’000 Profit before zakat and taxation 167,791 20,590 154,996 44,826 Tax expenses at the statutory tax rate of 24% (31.12.2019: 24%) 40,270 4,942 37,199 10,758 Income not subject to tax (35,739) (7,379) (49,283) (13,235) Net effect of expenses not deductible for tax purposes 4,170 3,728 12,662 2,477 Effect on share of results of associate 924 1,266 - - Deferred tax assets not recognised during the financial period/year 714 2,942 - - Effect of utilisation of previously unrecognised tax losses and capital allowances (1,115) (626) (578) - Under/(Over) provision of tax expense in prior years 10 (2,047) - - Under/(Over) provision of deferred tax in prior years 78 (722) - - Tax expense for the period/year 9,312 2,104 - - The overprovision of tax expenses in previous year was attributable to the utilisation of group tax relief upon submission of tax return to Inland Revenue Board (‘IRB’) by certain subsidiaries amounting to RM1,929,000. NOTES TO THE FINANCIAL STATEMENTS 88 KUB MALAYSIA BERHAD