7 FINANCIAL STATEMENTS 309 10. INCOME TAX EXPENSE Major components of income tax expense Major components of income tax expense for the years ended 31 December 2025 and 2024 are: Group Company 2025 RM’000 2024 RM’000 2025 RM’000 2024 RM’000 Current income tax: - Malaysian income tax 23,443 21,553 4,767 - - Foreign tax 24,808 27,515 - - 48,251 49,068 4,767 - Under/(over)provision of income tax in prior years: - Malaysian income tax 1,190 (452) 2 (135) - Foreign tax (31) (2,026) - - 1,159 (2,478) 2 (135) 49,410 46,590 4,769 (135) Deferred tax (Note 24): - Relating to origination and reversal of temporary differences 6,218 (682) - - - Overprovision in prior years (1,867) (639) - - 4,351 (1,321) - - Income tax recognised in profit or loss 53,761 45,269 4,769 (135) Domestic income tax is calculated at the Malaysian statutory tax rate of 24% (2024: 24%) of the estimated assessable profit for the year. Taxation for other jurisdictions is calculated at the rates prevailing in the respective jurisdictions. Profits derived from overseas branch operations are not subject to Malaysian tax. Pillar Two Taxes On 2 June 2023, the MASB has issued the Amendments to MFRS 112 Income Taxes International Tax Reform - Pillar Two Model Rules. This pronouncement is effective from annual period beginning on or after 1 January 2023. On 29 December 2023, Pillar Two legislation has been enacted in Malaysia, which came into effect on 1 January 2025. The Group has adopted the Amendments to MFRS 112 that introduced a mandatory temporary exception to the accounting for deferred taxes arising from the jurisdictional implementation of the Pillar Two Model Rules as well as disclosure requirements on the exposure to Pillar Two income taxes upon adoption. As the Company is a subsidiary of UEM Group Berhad and UEM Group Berhad is the ultimate parent entity of a multinational group that is in-scope of the Pillar Two Model Rules (with consolidated annual revenues in excess of EUR750 million), the Company and its subsidiaries also fall within the scope of the Rules. The Group has performed an assessment of its potential exposure to Pillar Two taxes based on the relevant Group entities’ financial information for the financial year 2025. Based on the Transitional Country by Country Report Safe Harbour assessment carried out, all jurisdiction, except for Malaysia, qualify for the Transitional Safe Harbour relief. However, Malaysia will not be subject to any Top-up Tax exposure upon performing the Global Anti-Base Erosion (“GloBE”) calculation. Accordingly, there is no current tax expense in relation to Pillar Two for the Group.
RkJQdWJsaXNoZXIy NDgzMzc=