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123
Maxis Berhad
Annual Report 2014
Notes to the
Financial Statements
31 December 2014
12 TAX EXPENSES
Group
Company
Note
2014
RM’000
2013
RM’000
2014
RM’000
2013
RM’000
Current tax (Malaysian):
- current year
699,308
781,165
900
1,100
- (over)/under accrual in prior years
(448)
2,155
(310)
42
698,860
783,320
590
1,142
Deferred tax:
- origination and reversal of temporary differences
32,697
(43,480)
-
-
- recognition and reversal of prior years’ temporary
differences
(150)
1,280
-
-
- changes in tax rate
(20,207)
(16,900)
-
-
22
12,340
(59,100)
-
-
Tax expenses
711,200
724,220
590
1,142
The Malaysian income tax is calculated at the statutory tax rate of 25% (2013: 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
2014
2013
2014
2013
%
%
%
%
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
5
6
4
- income not subject to tax
-
-
(31)
(29)
- changes in tax rate
(1)
(1)
-
-
Average effective tax rate
29
29
-
-
