MKH BERHAD | ANNUAL REPORT 2023 181 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 2023 2022 2023 2022 RM RM RM RM Profit before tax 117,197,229 171,253,926 99,083,745 84,261,540 Tax calculated using Malaysian tax rate of 24% (2022: 24%) 28,127,300 41,100,900 23,780,000 20,222,800 Tax effects of: Non-deductible expenses 7,202,654 6,987,177 1,842,169 3,049,620 Non-taxable income (2,538,976) (4,841,033) (25,397,169) (21,673,020) Share of results of associates (790,694) (336,090) - - Double deduction expenses - (6,600) - - Effect of difference in Real Property Gains Tax (“RPGT”) rate 125,020 (340,900) - - Effect of difference in overseas tax rate: The People’s Republic of China 50,300 28,600 - - Republic of Indonesia (836,893) (1,598,460) - - Deferred tax assets not recognized 7,278,100 5,323,000 - - Realisation of deferred tax assets not recognized in prior financial years (2,950,700) (4,753,178) - - Reversal of deferred tax assets recognized in prior year - 2,533,600 - - Under/(Over) provision in prior financial year: Current tax (1,873,287) 584,784 4,269 25,676 Deferred tax 2,125,932 (2,175,063) - - Tax expense 35,918,756 42,506,737 229,269 1,625,076 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2023
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