MISC Annual Report 2019

10. TAXATION (CONT’D.) The Government had proposed to reduce the exemption for the shipping sector provided under Section 54A of the Income Tax Act, 1967 (“the Act”) from 100% to 70% of statutory income effective from Year of Assessment (“YA”) 2012. Subsequently in December 2015, the Government has decided to defer the implementation of the above proposal to YA2021. The Group has available options to ensure that the Group continues to enjoy the tax benefit arising from shipping income. 11. EARNINGS PER SHARE Basic earnings per share is calculated by dividing profit for the year attributable to ordinary equity holders of the Corporation by the weighted average number of ordinary shares outstanding during the financial year. The Group does not have any financial instrument which may dilute its basic earnings per share. Group 2019 2018 Profit after taxation attributable to equity holders of the Corporation (RM’000) 1,426,355 1,311,503 Number of ordinary shares in issue (‘000) 4,463,794 4,463,794 Weighted average number of ordinary shares in issue (‘000) 4,463,794 4,463,794 Basic earnings per share (sen) 32.0 29.4 Diluted earnings per share (sen) 32.0 29.4 12. DIVIDENDS 2019 2018 RM’000 RM’000 Dividends recognised during the year: In respect of financial year ended 31 December 2017: Fourth tax exempt dividend of 9.0 sen per share – 401,741 In respect of financial year ended 31 December 2018: First tax exempt dividend of 7.0 sen per share – 312,466 Second tax exempt dividend of 7.0 sen per share – 312,466 Third tax exempt dividend of 7.0 sen per share – 312,466 Fourth tax exempt dividend of 9.0 sen per share 401,737 – In respect of financial year ended 31 December 2019: First tax exempt dividend of 7.0 sen per share 312,462 – Second tax exempt dividend of 7.0 sen per share 312,462 – Third tax exempt dividend of 7.0 sen per share 312,462 – 1,339,123 1,339,139 12. DIVIDENDS (CONT’D.) A fourth tax exempt dividend in respect of the financial year ended 31 December 2019 of 9.0 sen per share amounting to a dividend payable of RM401,737,000 will be paid on 17 March 2020. A special tax exempt dividend in respect of the financial year ended 31 December 2019 of 3.0 sen per share amounting to a dividend payable of RM133,912,000 will be paid on 17 March 2020. The fourth and special tax exempt dividends are not reflected in the current year’s financial statements. The dividends will be accounted for in equity as an appropriation of retained profits in the financial year ending 31 December 2020. NOTES TO THE FINANCIAL STATEMENTS 31 December 2019 NOTES TO THE FINANCIAL STATEMENTS 31 December 2019 FINANCIAL STATEMENTS MISC BERHAD PEOPLE. PASSION. POSSIBILITIES ANNUAL REPORT 2019 288 289