NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2023 257 OUR SUSTAINABILITY APPROACH HOW WE ARE GOVERNED FINANCIAL STATEMENTS SHAREHOLDERS’ INFORMATION ADDITIONAL INFORMATION 41. TAXATION AND ZAKAT (CONT’D.) Group Bank 2023 RM’000 2022 RM’000 2023 RM’000 2022 RM’000 Deferred tax (Note 19): Relating to origination and reversal of temporary differences 3,237 1,979 4,960 1,955 (Under)/over provision of deferred tax assets in prior years (6,194) 5,780 (1,394) 2,651 (2,957) 7,759 3,566 4,606 Zakat 427 351 427 291 Total income tax expense 15,359 18,796 3,784 3,371 Domestic income tax is calculated at the statutory tax rate of 24% (2022: 24%) on the estimated chargeable profit for the financial year. A reconciliation of taxation applicable to profit before taxation at the statutory income tax rate to taxation at the effective tax rate of the Group and of the Bank is as follows: Group Bank 2023 RM’000 2022 RM’000 2023 RM’000 2022 RM’000 Profit before taxation and zakat 88,110 74,150 58,696 58,290 Taxation at Malaysian statutory income tax rate of 24% (2022: 24%) 21,146 17,796 14,087 13,990 Effect of income not subject to tax (8,942) (6,795) (13,298) (14,518) Effect of expenses not deductible for tax purposes 7,924 5,064 4,171 2,483 Utilisation of previously unrecognised tax loss and unabsorbed capital allowances (219) - - - Deferred tax assets recognised on unutilised business losses (273) - - - Deferred tax asset not recognised on unutilised business losses (492) 646 - - Deferred tax asset not recognised on unabsorbed capital allowances 24 24 - - (Under)/over provision of deferred tax assets in prior years (6,194) 5,780 (1,394) 2,651 Under/(over) provision of income tax expense in prior years 1,958 (4,070) (209) (1,526) Tax expense for the year 14,932 18,445 3,357 3,080 Zakat 427 351 427 291 Tax expense and zakat for the financial year 15,359 18,796 3,784 3,371
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