GHL System Berhad Annual Report 2018

a n n u a l r e p o r t 2 0 1 8 87 NOT ES TO THE F I NANC I A L STAT EMENTS 3 1 D e c e m b e r 2 0 1 8 C O N T ’ D 9. TAX EXPENSE Group Company 2018 2017 2018 2017 RM RM RM RM Current tax expense based on profit for the financial year: Malaysia income tax 5,119,693 3,346,775 334,299 685,799 Foreign income tax 2,346,296 1,097,077 - - Under/(Over)-provision in prior years 139,671 200,831 (72,671) (144,701) 7,605,660 4,644,683 261,628 541,098 Deferred tax (Note 19): Relating to origination and reversal of temporary differences (294,969) 181,901 (98,000) 57,447 Under-provision in prior years 1,597,339 78,573 16,759 78,573 1,302,370 260,474 (81,241) 136,020 Tax expense for the financial year 8,908,030 4,905,157 180,387 677,118 (a) The Malaysian income tax is calculated at the statutory tax rate of 24% (2017: 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.