MKH Annual Report 2020

143 MKH BERHAD 8. TAX EXPENSE (CONT’D) A reconciliation of tax expense applicable to profit before tax at the applicable statutory income tax rate to tax expense at the effective income tax rate of the Group and of the Company is as follows: The Group The Company 2020 RM 2019 RM 2020 RM 2019 RM Profit before tax 116,475,686 158,372,816 58,821,224 52,241,187 Tax calculated using Malaysian tax  rate of 24% (2019: 24%) 27,954,200 38,009,500 14,117,000 12,537,900 Tax effects of:  Non-deductible expense 7,952,590 9,518,797 2,189,836 1,663,174  Non-taxable income (2,226,941) (4,959,224) (12,242,900) (9,816,900)  Share of results of associates 1,227,286 212,442 - - Double deduction expenses (33,100) - - - Effect of differences in Real  Property Gains Tax (“RPGT”) rate 1,703,100 870,000 - - Effect of differences in overseas  tax rate:  The People’s Republic of China 34,300 33,800 - -   Republic of Indonesia (114,417) 65,637 - - Deferred tax assets not  recognised 13,214,415 8,261,570 - - Realisation of deferred tax assets  not recognised in prior financial years (958,020) (705) - - Reversal of deferred tax assets  recognised in prior year 602,700 3,963,700 - - Utilisation of reinvestment  allowance - (97,500) - - Underprovision in prior financial year:  Current tax 788,441 4,773,044 21,110 4,004  Deferred tax 64,360 244,986 3,960 - Tax expense 50,208,914 60,896,047 4,089,006 4,388,178 Notes to the Financial Statements FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2020