Maxis Berhad | Annual Report 2013

113 OVERVIEW OUR BUSINESS STRATEGIC REVIEW CORPORATE GOVERNANCE FINANCIAL STATEMENTS Maxis Berhad Annual Report 2013 OTHER INFORMATION 12 TAX EXPENSES GROUP COMPANY NOTE 2013 2012 2013 2012 RM’000 RM’000 RM’000 RM’000 Current tax (Malaysian): - current year 781,165 787,231 1,100 1,570 - under/(over) accrual in prior years 2,155 (68,059) 42 (14) 783,320 719,172 1,142 1,556 Deferred tax: - origination and reversal of temporary differences (43,480) (79,645) – – - recognition and reversal of prior years’ temporary differences 1,280 76,514 – – - changes in tax rate (16,900) – – – 22 (59,100) (3,131) – – Tax expenses 724,220 716,041 1,142 1,556 The Malaysian income tax is calculated at the statutory tax rate of 25% (2012: 25%) on the estimated chargeable profit for the financial year. Subsequent to the announcement of reduction in the corporate tax rate to 24% with effect from year of assessment 2016 in the Malaysian Budget 2014, the computation of deferred tax assets and deferred tax liabilities has been adjusted accordingly to reflect such changes. Taxes in foreign jurisdictions are calculated at the rates prevailing in the respective jurisdictions. The explanation of the relationship between the tax expenses and profit before tax is as follows: GROUP COMPANY 2013 2012 2013 2012 % % % % Numerical reconciliation between the Malaysian tax rate and average effective tax rate Malaysian tax rate 25 25 25 25 Tax effects of: - expenses not deductible for tax purposes 5 4 4 3 - income not subject to tax – – (29) (28) - effect of tax incentive – (1) – – - recognition and reversal of prior years’ temporary differences – 3 – – - changes in tax rate (1) – – – - over accrual in prior years – (3) – – Average effective tax rate 29 28 – –