Wah Seong Corporation Berhad Annual Report 2020

170 WAH SEONG CORPORATION BERHAD NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020 34 TAX EXPENSE/(CREDIT) (CONTINUED) Group Company 2020 2019 2020 2019 RM’000 RM’000 RM’000 RM’000 Current tax: - Current financial year 21,492 39,631 1,879 2,172 - (Over)/Under accrual in prior financial years (1,790) (36,300) 211 105 19,702 3,331 2,090 2,277 Deferred taxation (Note 8) - Origination and reversal of temporary differences 18,976 (11,336) (1,150) (32) Tax expense/(credit) recognised in profit or loss 38,678 (8,005) 940 2,245 For the financial year ended 31 December 2019, the overprovision of foreign tax in prior financial year includes reversal of tax provision following a re-estimation of certain tax position based on most recent information available. The numerical reconciliation between the tax expense and the product of accounting profit multiplied by the statutory tax rate is as follows: Group Company 2020 2019 2020 2019 RM’000 RM’000 RM’000 RM’000 (Loss)/Profit before tax (268,024) 5,562 (97,730) (541) Calculated at the Malaysian tax rate of 24% (2019: 24%) on (loss)/profit before tax (64,326) 1,335 (23,455) (130) Expenses not deductible for tax purposes 70,926 27,579 30,763 2,432 Income not subject to tax (11,094) (10,009) (6,579) (162) Utilisation of previously unrecognised tax losses and unabsorbed capital allowances (3,301) (4,433) - - Current financial year deferred tax assets not recognised 8,713 3,369 - - Reversal of previously recognised deferred tax assets 20,781 1,310 - - Utilisation of tax incentives (318) (218) - - Effect of different tax rates in other countries 15,604 8,117 - - (Over)/Under provision in prior financial years (1,790) (36,300) 211 105 Share of associates and joint ventures results 3,071 1,079 - - Others 412 166 - - Tax expense/(credit) recognised in profit or loss 38,678 (8,005) 940 2,245