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Annual Report 2017
157
Notes to the
financial statements
31 march 2017
10. Income tax expense
Major components of income tax expense
The major components of income tax expense for the years ended 31 March 2017 and 2016 are:
Group
Company
2017
2016
2017
2016
RM’000
RM’000
RM’000
RM’000
Current income tax:
- Malaysian income tax
39,966
25,091
2,024
59
- Underprovision in prior years
3,037
2,991
1,659
911
43,003
28,082
3,683
970
Deferred tax (Note 28):
Relating to origination and reversal of temporary
differences
(9,504)
5,358
-
(160)
Under/(over) provision in prior years
744
(1,769)
(584)
10
(8,760)
3,589
(584)
(150)
Total income tax expense
34,243
31,671
3,099
820
Domestic current income tax is calculated at the statutory tax rate of 24% (2016: 24%) of the estimated assessable profit for
the year.
Taxation for other jurisdictions is calculated at the rates prevailing in the respective jurisdictions. During the current financial
year, the income tax rate applicable to the subsidiaries in Indonesia and Papua New Guinea were 25% (2016: 25%) and 30%
(2016: 30%), respectively.
Reconciliation between tax expense and accounting profit
A reconciliation 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 of the Group and of the Company is as follows:
Group
Company
2017
2016
2017
2016
RM’000
RM’000
RM’000
RM’000
Profit before tax
84,672
111,674
54,300
52,711
Taxation at statutory tax rate of 24% (2016: 24%)
20,321
26,802
13,032
12,651
Effect of income not subject to tax
(695)
(135)
(13,428)
(12,952)
Effect of tax rates in foreign jurisdiction
1,153
1,065
-
-
Effect of partial tax exemption
(32)
(34)
-
-
Effect of expenses not deductible for tax purposes
10,310
2,463
2,420
200
Effect of share results of associates
(687)
(400)
-
-
Deferred tax assets not recognised in respect of current
year’s tax losses and unabsorbed capital allowances
92
688
-
-
Underprovision of income tax expense in prior years
3,037
2,991
1,659
911
Under/(over) provision of deferred tax in prior years
744
(1,769)
(584)
10
34,243
31,671
3,099
820