90 GHL SYSTEMS BERHAD 199401007361 (293040-D) ANNUAL REPORT 2022 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2022 CONT’D 9. TAXATION Group Company 2022 2021 2022 2021 RM RM RM RM Current tax expense based on profit for the financial year: Malaysia income tax 8,744,059 7,212,370 50,870 - Foreign income tax 2,559,715 2,324,106 - - Under/(Over)-provision in prior years 232,640 (82,421) - - 11,536,414 9,454,055 50,870 - Deferred tax (Note 18): Relating to origination and reversal of temporary differences 746,170 2,733,920 20,509 6,148 (Over)/Under-provision in prior years (42,045) 353,206 (34,805) 37,042 704,125 3,087,126 (14,296) 43,190 Tax expense for the financial year 12,240,539 12,541,181 36,574 43,190 (a) The Malaysian income tax is calculated at the statutory tax rate of 24% (2021: 24%) of the estimated taxable profits for the fiscal year. (b) Taxation for other taxation authorities are calculated at the rates prevailing in those respective jurisdictions. (c) The numerical reconciliation between the tax expense and the product of accounting profit multiplied by the applicable tax rates of the Group and of the Company are as follows: Group Company 2022 2021 2022 2021 RM RM RM RM Profit before taxation 40,565,499 40,684,004 37,357,766 19,490,231 Tax at Malaysian statutory tax rate of 24% (2021: 24%) 9,735,720 9,764,161 8,965,864 4,677,655 Tax effects in respect of: Non-allowable expenses 3,608,237 4,565,068 477,465 1,516,861 Non-taxable income (2,426,848) (2,304,024) (9,836,836) (6,496,778) Higher tax rates in foreign jurisdiction (1,537) 465,581 - - Utilisation of previously unrecognised deferred tax assets (695,207) (1,339,614) - - Deferred tax assets not recognised 1,829,579 1,119,224 464,886 308,410 12,049,944 12,270,396 71,379 6,148 Under/(Over)provision of income tax expense in prior years 232,640 (82,421) - - (Over)/Underprovision of deferred tax in prior years (42,045) 353,206 (34,805) 37,042 Tax expense for the financial year 12,240,539 12,541,181 36,574 43,190
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