MKH Annual Report 2019

142 A N N U A L R E P O R T 2 0 1 9 8. TAX EXPENSE (CONT’D) A reconciliation of tax expense applicable to profit before tax at the applicable statutory income tax rate to tax expense at the effective income tax rate of the Group and of the Company is as follows: The Group The Company 2019 2018 2019 2018 RM RM RM RM (Restated) Profit before tax 158,372,816 128,231,642 52,241,187 62,151,457 Tax calculated using Malaysian  tax rate of 24% (2018:24%) 38,009,500 30,775,600 12,537,900 14,916,400 Tax effects of:  Non-deductible expenses 9,518,797 11,355,307 1,663,174 1,321,100  Non-taxable income (4,959,224) (3,289,322) (9,816,900) (12,124,000)  Share of results of associates 212,442 (86,539) - - Effect of changes in tax rate:  Investment properties 870,000 60,230 - -  Real property gains tax - 6,496,070 - - Effect of differences in overseas tax rate:  The People’s Republic of China 33,800 9,000 - -  Republic of Indonesia 65,637 182,646 - - Deferred tax assets not recognised 8,261,570 6,477,740 - - Realisation of deferred tax assets not  recognised in prior financial years (705) (1,704,700) - - Reversal of deferred tax assets  recognised in prior year 3,963,700 - - - Utilisation of reinvestment allowance (97,500) (66,300) - - Under/(Over)provision in prior financial year:  Current tax 4,773,044 1,673,630 4,004 24,584  Deferred tax 244,986 (264,722) - - Tax expense 60,896,047 51,618,640 4,388,178 4,138,084 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2019