NOTES TO THE FINANCIAL STATEMENTS
31 December 2014
(cont’d)
E X C E L F O R C E M S C B E R H A D • A N N U A L R E P O R T 2 0 1 4
88
26. TAX EXPENSE
Group
Company
2014
2013
2014
2013
RM
RM
RM
RM
Current year tax expense based on
profit for the financial year
2,098,189
2,239,089
2,078,293
2,239,089
- (Over)/Under-provision in prior year
(69,910)
84,407
(69,910)
84,407
2,028,279
2,323,496
2,008,383
2,323,496
Deferred tax (Note 21)
- Relating to origination and reversal of
temporary differences
(446,190)
9,330
(470,689)
9,330
- Over-provision in prior year
(100,691)
-
(104,430)
-
(546,881)
9,330
(575,119)
9,330
1,481,398
2,332,826
1,433,264
2,332,826
The subsidiaries, Insage (MSC) Sdn. Bhd. (‘Insage’) and Capital Market Risk Advisor Sdn. Bhd. (‘CMRA’)
have been awarded Multimedia Super Corridor status by the Government of Malaysia. Accordingly, there
is no tax charge on the business income of the subsidiaries as the subsidiaries have been granted Pioneer
Status under the Promotion of Investments (Amendment) Act, 1997. The Pioneer Status was for the period
from 23 March 2009 to 22 March 2014 and 26 November 2013 to 26 October 2018 for Insage and CMRA
respectively.
The salient terms of the Pioneer Status are as follows:
(i) 100% tax exemption on business income;
(ii) unabsorbed pioneer capital allowances can be carried forward to the post pioneer period; and
(iii) unabsorbed pioneer losses can be carried forward to the post pioneer period.
The Pioneer Status of Insage had expired on 22 March 2014. On 15 May 2014, the management obtained
approval for extension of the Pioneer Status from the relevant authorities from 23 March 2014 to 22 March
2019.
Malaysian income tax is calculated at the statutory tax rate of 25% (2013: 25%) of the estimated taxable
profit for the fiscal year.
