2019 UEM Edgenta Annual Report

190 191 UEM EDGENTA AT A GLANCE MESSAGE FROM OUR LEADERSHIP STRATEGIC FOCUS OPERATIONAL REVIEW SUSTAINABILITY EFFORTS CORPORATE GOVERNANCE INTRODUCTION FINANCIAL REVIEW ADDITIONAL INFORMATION Notes to the Financial Statements For the year ended 31 December 2019 Notes to the Financial Statements For the year ended 31 December 2019 UEM Edgenta Berhad Annual Report 2019 10. INCOME TAX EXPENSE/(BENEFIT) (CONT’D.) Group Company 2019 RM’000 2018 RM’000 2019 RM’000 2018 RM’000 Income statements (cont’d.) Deferred tax (Note 32): - Relating to origination and reversal of temporary differences 3,909 (2,933) - - - (Over)/under provision in prior years (2,491) 4,109 - - 1,418 1,176 - - Income tax recognised in profit or loss 53,844 43,260 (218) - Statements of other comprehensive income Deferred tax related to items recognised during the year (Note 32): - Remeasurement loss on Retirement Benefit Scheme and Defined Benefit Pension Scheme - 61 - - - 61 - - Domestic income tax is calculated at the Malaysian statutory tax rate of 24% (2018: 24%) of the estimated assessable profit for the year. Taxation for other jurisdictions is calculated at the rates prevailing in the respective jurisdictions. Profits derived from overseas branch operations are not subject to Malaysian tax. 10. INCOME TAX EXPENSE/(BENEFIT) (CONT’D.) Reconciliation between tax expense and accounting profits A reconciliation of 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: 2019 RM’000 2018 RM’000 Group Profit before tax 244,949 198,471 Less: Zakat (3,065) (2,850) 241,884 195,621 Taxation at Malaysian statutory tax rate of 24% (2018: 24%) 58,052 46,949 Tax effect on share of profit of associates (5,160) (3,965) Income not subject to tax (2,492) (5,028) Exempt income (1,914) (1,546) Foreign income not subject to tax (5,176) (1,595) Non-deductible expenses 18,227 15,007 Different tax rates in other countries (4,859) (2,393) Utilisation of previously unrecognised tax losses and unabsorbed capital allowances (969) (10) Deferred tax assets not recognised during the year 3,095 840 Utilisation of group tax relief - (1,700) (Over)/under provision of deferred tax in prior years (2,491) 4,109 Over provision of income tax expense in prior years (2,469) (7,408) Income tax expense recognised in income statements 53,844 43,260 The above reconciliation is prepared by aggregating separate reconciliations for each national jurisdiction. Company Profit before tax 103,142 36,949 Taxation at Malaysian statutory tax rate of 24% (2018: 24%) 24,754 8,868 Non-deductible expenses 30,981 37,150 Income not subject to tax (55,687) (46,018) Over provision of income tax in prior year (266) - Income tax expense recognised in income statements (218) -