NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2025 8. TAX EXPENSE (CONT'D) Under the Indonesia tax regulations, the unused tax losses can be utilised within 5 years after the losses were incurred. Business loss incurred in YA 2025 RM Carried forward up to YA Unutilised amount will be disregarded in YA 2023 2,956,900 2028 2029 2024 3,746,400 2029 2030 2025 1,135,020 2030 2031 7,838,320 Tax Assessments YA2019 On 7 January 2021, PT Maju Kalimantan Hadapan (“PTMKH”), a subsidiary of the Company, received a Notice of Tax Overpaid Assessment from the Indonesia’s Director General of Tax (“DGT”) amounting to IDR29,816 million, equivalent to RM7.54 million for the year of assessment 2019. On 1 April 2021, PTMKH filed an objection letter in reply to the above Notice of Tax Overpaid Assessment, as management are of the opinion, PTMKH should have tax refund amounting to IDR35,281 million, equivalent to RM8.92 million. DGT has restricted the claim on management fee incurred by PTMKH amounted to IDR21,855 million, equivalent to RM5.53 million which resulted in an additional tax liability of IDR5,464 million, equal to RM1.38 million. On 24 December 2021, the objection letter has been rejected by tax appeal office in Balikpapan, Indonesia. On 18 March 2022, PTMKH filed an appeal to tax court in Jakarta, Indonesia. On 24 August 2022, PTMKH received a notice of tax hearing from Jakarta’s tax court to attend the said tax appeal on 7 September 2022. The Jakarta’s tax court had requested PTMKH to provide additional analysis and summary report for the tax assessment during the tax hearing on 7 September 2022, 5 October 2022, 9 November 2022, 7 December 2022, 25 January 2023, 22 February 2023, 29 March 2023 and 17 May 2023. As at to date, the Jakarta’s tax court has yet to make a conclusion on PTMKH appeal to the abovementioned. Tax Assessments YA2023 On 16 January 2025, PTMKH received a Notice of Tax Overpaid Assessment from DGT amounting to IDR2,720 million, equivalent to RM0.68 million for the year of assessment 2023. On 16 April 2025, PTMKH filed an objection letter in reply to the above Notice of Tax Overpaid Assessment, as management is of the opinion that PTMKH should have tax refund amounting to IDR11,679 million, equivalent to RM2.95 million. DGT has restricted the claim on management fee and interest expense on amount due to a related company incurred by PTMKH amounted to IDR40,723 million, equivalent to RM10.30 million which resulted in an additional tax liability of IDR8,959 million, equivalent to RM2.27 million. On 28 October 2025, the objection letter has been rejected by tax appeal office in Balikpapan, Indonesia. PTMKH will further proceed to file appeal to tax court in Jakarta, Indonesia. Based on consultation with the local tax experts, the directors of PTMKH are of the opinion that PTMKH has a valid defence against DGT’s assessment for YA2019 and YA2023. Accordingly, the Group has not made any adjustments in respect of the tax assessment in the financial statements of the Group. 6 Financial Insights Through Numbers 1 3 5 2 4 7 PG | 207 ANNUAL REPORT 2025 MKH BERHAD
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