GHL System Berhad Annual Report 2017

ANNUAL REPORT 2017 81 NOTES TO THE FINANCIAL STATEMENTS 31 December 2017 CONT’D 7. EMPLOYEE BENEFITS Group Company 2017 2016 2017 2016 RM RM RM RM Salaries and bonuses 42,364,011 41,162,283 6,655,197 5,599,540 Contributions to defined contribution plan 4,321,094 2,282,982 730,433 635,026 Social security contributions 363,706 350,671 35,105 27,443 Share options granted under ESS 18,962 400,408 18,962 93,217 Other benefits 2,463,257 3,143,840 583,673 641,382 49,531,170 47,340,184 8,023,370 6,996,608 Included in the employee benefits of the Group and of the Company are Executive Directors’ remuneration of RM1,310,713 (2016: RM1,408,803). 8. TAX EXPENSE Group Company 2017 2016 2017 2016 RM RM RM RM Current tax expense based on profit/(loss) for the financial year: Malaysia income tax 3,346,775 3,641,272 685,799 281,110 Foreign income tax 1,097,077 735,888 - 8,214 Under/(Over) provision in prior years 200,831 846,061 (144,701) 10,708 4,644,683 5,223,221 541,098 300,032 Deferred tax: (Note 17) Relating to origination and reversal of temporary differences 181,901 1,381,701 57,447 - Under provision in prior years 78,573 - 78,573 - 260,474 1,381,701 136,020 - Tax expense for the financial year 4,905,157 6,604,922 677,118 300,032 (a) The Malaysian income tax is calculated at the statutory tax rate of 24% (2016: 24%) of the estimated taxable profits for the fiscal year. (b) Taxation for other taxation authorities are calculated at the rates prevailing in those respective jurisdictions.