10. INCOME TAX EXPENSE (CONTD.) Pillar Two Taxes (contd.) As at reporting date, the Group has carried out preliminary assessments based on 2024 financial information for the constituent entities in the Group. Based on the Transitional Country-by-Country Report Safe Harbour assessment carried out, all jurisdictions in which the Group operates can rely on the transitional safe harbour relief (except for Singapore and United Arab Emirates). The Group does not expect a material exposure to Pillar Two income taxes in all the jurisdictions that the Group operates, except for Singapore and United Arab Emirates. The Group is still in the midst of gathering information to quantify the potential Pillar Two taxes in Singapore and United Arab Emirates and continuing to follow Pillar Two legislative developments to evaluate potential future impact on our consolidated results of operations, financial position and cash flows beginning in 2025. Reconciliation between tax expense and accounting profits A reconciliation of income tax expense and the product of accounting profit multiplied by the applicable corporate tax rate for the years ended 31 December 2024 and 2023 are as follows: Group 2024 RM’000 2023 RM’000 Profit before tax and zakat 98,336 63,654 Less: Zakat (1,317) (1,160) 97,019 62,494 Taxation at Malaysian statutory tax rate of 24% (2023: 24%) 23,285 14,999 Tax effect on share of profit of associates (2,399) (2,056) Tax effect on share of profit of a joint venture (11) (1) Income not subject to tax (4,101) (914) Foreign income not subject to tax – (2,863) Non-deductible expenses 25,552 26,722 Different tax rates in other countries (2,626) (1,780) Utilisation of previously unrecognised tax losses and unabsorbed capital allowances (805) (6,067) Deferred tax assets not recognised during the year 9,491 5,115 Overprovision of deferred tax in prior years (639) (1,079) (Over)/underprovision of income tax expense in prior years (2,478) 324 Income tax expense recognised in statement of comprehensive income 45,269 32,400 The above reconciliation is prepared by aggregating separate reconciliations for each national jurisdiction. Notes to the Financial Statements For the year ended 31 December 2024 UEM EDGENTA BERHAD 310 Integrated Annual Report 2024
RkJQdWJsaXNoZXIy NDgzMzc=