29. TAX EXPENSE Group Company 1.1.2024 to 1.7.2022 to 1.1.2024 to 1.7.2022 to 31.12.2024 31.12.2023 31.12.2024 31.12.2023 RM’000 RM’000 RM’000 RM’000 Recognised in profit or loss Current tax expense - Current year/period 23,174 89,123 4,374 5,927 - Under/(over) provision in prior period/year 139 277 (209) 368 Total current tax expense 23,313 89,400 4,165 6,295 Deferred tax expense (Note 10) - Current year/period (13,544) 278,396 - - - Over provision in prior period/year - (20,818) - - Total deferred tax (credit)/expense (13,544) 257,578 - - Total tax expense 9,769 346,978 4,165 6,295 Reconciliation of tax expense Net (loss)/profit after tax (89,639) (190,785) (65,153) 3,261 Total tax expense 9,769 346,978 4,165 6,295 Zakat 1,476 1,051 - - Net (loss)/profit excluding tax and Zakat (78,394) 157,244 (60,988) 9,556 Income tax using Malaysian tax rate of 24% (31.12.2023: 24%) (18,815) 37,739 (14,637) 2,293 Income not subject to tax (616) (1,712) (6,458) (5,975) Expenses not deductible for tax purposes 61,112 51,864 25,422 9,658 Effect of exchange rate fluctuations (2,652) 7,962 - - Effect of unrecognised deferred tax assets 14,073 80,657 47 (49) Effects of differential in tax rates of subsidiaries (43,508) 191,009 - - Real property gains tax arising from disposal of a building 36 - - - 9,630 367,519 4,374 5,927 Under/(over) provision of tax expense in prior period/year 139 277 (209) 368 Over provision of deferred tax expense in prior period/year - (20,818) - - Total tax expense 9,769 346,978 4,165 6,295 On 26 May 2022, the UK government introduced an Energy Profit Levy ("EPL"), applying to ring fence profits. The EPL was set at 25% for profits arising from 26 May 2022 to 31 December 2022 and 35% for profits arising from 1 January 2023 to 31 March 2028. During the current financial year, the Group’s unwinding of deferred tax liabilities related to EPL contributed to deferred tax credit of approximately RM46,721,000 (31.12.2023: Deferred tax expense of RM143,208,000). The EPL is measured based on temporary differences from the expected future amortisation of intangible assets and depreciation of oil and gas assets up to 31 March 2028. 172 Financial Statements DAGANG NeXCHANGE BERHAD Integrated Report 2024 NOTES TO THE FINANCIAL STATEMENTS for the financial year ended 31 December 2024
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