2020 UEM Edgenta Annual Report

10. INCOME TAX EXPENSE/(BENEFIT) (CONTD.) 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 2020 and 2019 are as follows: Group RM’000 2020 2019 Profit before tax 46,932 244,949 Less: Zakat (2,367) (3,065) 44,565 241,884 Taxation at Malaysian statutory tax rate of 24% (2019: 24%) 10,696 58,052 Tax effect on share of profit of associates (3,781) (5,160) Income not subject to tax (8,874) (2,492) Exempt income (4,621) (1,914) Foreign income not subject to tax (1,906) (5,176) Non-deductible expenses 33,618 18,227 Different tax rates in other countries (7,266) (4,859) Utilisation of previously unrecognised tax losses and unabsorbed capital allowances (1,238) (969) Deferred tax assets not recognised during the year 12,747 3,095 Under/(over) provision of deferred tax in prior years 625 (2,491) Under/(over) provision of income tax expense in prior years 192 (2,469) Income tax expense recognised in income statements 30,192 53,844 The above reconciliation is prepared by aggregating separate reconciliations for each national jurisdiction. Company RM’000 2020 2019 (Loss)/profit before tax (76,784) 103,142 Taxation at Malaysian statutory tax rate of 24% (2019: 24%) (18,428) 24,754 Non-deductible expenses 17,676 26,892 Income not subject to tax (2,705) (55,687) Deferred tax asset not recognised 3,467 4,089 Over provision of income tax in prior year – (266) Income tax expense/(benefit) recognised in income statements 10 (218) ANNUAL REPORT 2020 233 1 2 3 4 5 6 7 8