My EG Services Berhad Annual Report 2021

MY E.G. SERVICES BERHAD Registration No. 200001003034 (505639-K) 220 NOTES TO THE FINANCIAL STATEMENTS ʹˢ˥ ˧˛˘ Ѓˡ˔ˡ˖˜˔˟ ˬ˘˔˥ ˘ˡ˗˘˗ ʦʤ ʷ˘˖˘ˠ˕˘˥ ʥʣʥʤ (CONT’D) 38. INCOME TAX EXPENSE The Group The Company 2021 2020 2021 2020 RM’000 RM’000 RM’000 RM’000 Current tax: - for the current financial year 3,479 1,441 114 164 - (over)/underprovision in the previous financial year (49) 173 - - 3,430 1,614 114 164 Deferred tax (Note 30): - for the current financial year 548 170 - - - overprovision in the previous financial year - (20) - - 548 150 - - 3,978 1,764 114 164 A reconciliation of income tax expense applicable to the profit before taxation at the statutory tax rate to income tax expense at the effective tax rate of the Group and the Company is as follows:- The Group The Company 2021 2020 2021 2020 RM’000 RM’000 RM’000 RM’000 Profit before taxation 320,683 268,958 30,053 276,794 Tax at the applicable statutory tax rate of 24% 76,964 64,550 7,213 66,431 Tax effects of:- Tax-exempt income (70,661) (73,165) (433) (15) Non-taxable income (34) - (240) (72,000) Non-deductible expenses 6,229 5,170 1,172 3,163 Deferred tax assets not recognised during the financial year 854 5,205 - 2,585 Utilisation of deferred tax assets previously not recognised (9,323) (147) (7,598) - Effects of differential in tax rates of a foreign subsidiary (2) (2) - - (Over)/Underprovision in the previous financial year: - current tax (49) 173 - - - deferred tax - (20) - - 3,978 1,764 114 164 Domestic income tax is calculated at the Malaysian statutory tax rate of 24% (2020 - 24%) of the estimated assessable profit for the financial year. On 10 August 2016, a subsidiary with MSC Malaysia status, was granted an extension of the Pioneer Status Incentive under the Promotion of Investments Act, 1986 (“Pioneer Status”). The subsidiary will enjoy full exemption from income tax on its statutory income from pioneer activities for five (5) years, from 27 April 2016 to 26 April 2021.

RkJQdWJsaXNoZXIy NDgzMzc=