Al-`Aqar Healthcare REIT Annual Report 2018

NOTES TO THE FINANCIAL STATEMENTS 8. TAX The Group The Fund 2018 2017 2018 2017 RM RM RM RM Recognised in profit or loss: Current tax: Real Property Gain Tax (“RPGT”) - (608,822) - (608,822) Overprovision in previous years 347 9,144 347 - Deferred tax (Note 16) (917,555) (909,874) - - (917,208) (1,509,552) 347 (608,822) Recognised in other comprehensive income: Deferred tax arising from translation of a foreign operation (Note 16) 2,491,980 875,763 - - Reconciliation between tax and accounting profit A reconciliation of tax applicable to profit before tax at the statutory income tax rate to tax at the effective income tax rate of the Group and of the Fund are as follows: The Group The Fund 2018 2017 2018 2017 RM RM RM RM Profit before tax 92,291,662 86,154,086 83,111,785 84,510,721 Tax at Malaysian statutory tax rate of 24% (22,149,999) (20,676,981) (19,946,828) (20,282,573) Different tax rates in other countries 388,105 (587,557) - - Adjustments: Non-deductible expenses (1,025,004) (1,075,474) (2,297,445) (776,901) Income not subject to tax 10,062,467 6,434,077 10,021,606 8,568,892 Income exempted from tax 11,806,876 14,996,061 12,222,667 12,490,582 RPGT - (608,822) - (608,822) Overprovision of current tax in previous years 347 9,144 347 - Tax recognised in profit or loss (917,208) (1,509,552) 347 (608,822) Pursuant to the Section 61A of the Income Tax Act 1967 (ITA), where 90% or more of the total income of the unit trust is distributed to the unit holder, the total income of the unit trust for that year of assessment shall be exempted from tax. The Manager also expects to distribute the net income within two months from the end of each financial year and accordingly, no estimated current tax payable or deferred tax is required to be provided in the financial statements. FINANCIAL REPORTS 125 FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 (CONTINUED)