282 KENANGA INVESTMENT BANK BERHAD INTEGRATED ANNUAL REPORT 2025 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2025 41. TAXATION AND ZAKAT (CONT’D.) Group Bank 2025 RM’000 2024 RM’000 2025 RM’000 2024 RM’000 Deferred tax (Note 19): Relating to origination and reversal of temporary differences 10,316 (5,744) 5,515 (2,872) Under/(over) provision of deferred tax assets in prior years 1,183 (1,198) 6,362 (975) 11,499 (6,942) 11,877 (3,847) Zakat 578 617 578 617 Total income tax expense 23,599 21,494 8,228 13,224 Domestic income tax is calculated at the statutory tax rate of 24% (2024: 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 2025 RM’000 2024 RM’000 2025 RM’000 2024 RM’000 Profit before taxation and zakat 73,564 117,249 54,852 85,212 Taxation at Malaysian statutory income tax rate of 24% (2024: 24%) 17,655 28,140 13,164 20,451 Effect of income not subject to tax (8,944) (11,534) (10,047) (10,058) Effect of expenses not deductible for tax purposes 11,759 8,129 5,122 3,189 Utilisation of previously unrecognised tax loss and unabsorbed capital allowances (661) - - - Deferred tax asset not recognised on unutilised business losses and unabsorbed capital allowances 3,837 930 - - Under/(over) provision of deferred tax assets in prior years 1,183 (1,198) 6,362 (975) Over provision of income tax expense in prior years (1,808) (3,590) (6,951) - Tax expense for the year 23,021 20,877 7,650 12,607 Zakat 578 617 578 617 Tax expense and zakat for the financial year 23,599 21,494 8,228 13,224
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