Kimlun Corporation Berhad Annual Report 2017

Kimlun Corporation Berhad 90 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 (cont’d) 10. Income tax expense The major components of income tax expense for the years ended 31 December 2017 and 2016 are: Group Company 2017 2016 2017 2016 RM RM RM RM Statement of comprehensive income: Current income tax: - Malaysian income tax 23,907,302 21,684,080 511,000 529,000 - (Over)/underprovision in respect of previous years (77,203) (71,647) 265 (187) 23,830,099 21,612,433 511,265 528,813 Deferred tax (Note 27): - Origination and reversal of temporary differences (1,666,995) 4,590,242 - - - (Over)/underprovision in respect of previous years (466,010) 849,410 - - (2,133,005) 5,439,652 - - Income tax expense recognised in profit or loss 21,697,094 27,052,085 511,265 528,813 Reconciliation between tax expense and accounting profit The reconciliation between tax expense and the product of accounting profit multiplied by the applicable corporate tax rate for the years ended 31 December 2017 and 2016 are as follows : Group Company 2017 2016 2017 2016 RM RM RM RM Profit before tax 90,034,951 108,971,113 20,330,018 14,357,798 Taxation at Malaysian statutory tax rate of 24% (2016 : 24%) 21,608,388 26,153,067 4,879,000 3,445,872 Different tax rates in an other country 2,070 (3,405) - - Effect of reduction in Malaysian income tax rate (729,982) - - - Expenses not deductible for tax purposes 4,752,020 1,265,906 248,000 174,808 Income not subject to tax (4,169,083) (125,035) (4,616,000) (3,091,680) Deferred tax assets recognised for unabsorbed capital allowances and unutilised tax losses - (225,499) - - Deferred tax assets not recognised for unabsorbed capital allowances and unutilised tax losses 777,675 317,249 - - Utilisation of current year’s reinvestment allowances and business loss - (919,157) - - (Over)/underprovision of income tax in respect of previous year (77,203) (71,647) 265 (187) Share of tax of joint ventures (781) (188,804) - - (Over)/Underprovision of deferred tax in respect of previous year (466,010) 849,410 - - Income tax expense recognised in profit or loss 21,697,094 27,052,085 511,265 528,813 Domestic income tax is calculated at the Malaysian statutory tax rate of 24% (2016: 24%) of the estimated assessable profit for the year. The corporate tax rate applicable to the Singapore subsidiary of the Group was 17% for the year of assessment 2017 and 2016. The above reconciliation is prepared by aggregating separate reconciliations for each national jurisdiction.