My EG Services Berhad Annual Report 2020

ANNUAL REPORT 2020 199 FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS For The Financial Year Ended 31 December 2020 (CONT’D) 38. INCOME TAX EXPENSE The Group The Company 1.1.2020 to 31.12.2020 1.10.2018 to 31.12.2019 1.1.2020 to 31.12.2020 1.10.2018 to 31.12.2019 RM’000 RM’000 RM’000 RM’000 Current tax: - for the current financial year/period 1,441 2,064 164 223 - underprovision in the previous financial period 173 2,063 - 2,246 1,614 4,127 164 2,469 Deferred tax (Note 30): - for the current financial year/period 170 (4) - - - overprovision in the previous financial period (20) (50) - - 150 (54) - - - reversal of deferred tax assets - 710 - - 150 656 - - 1,764 4,783 164 2,469 A reconciliation of income tax expense applicable to the profit before taxation at the statutory tax rate to income tax expense at the effective tax rate of the Group and the Company is as follows:- The Group The Company 1.1.2020 to 31.12.2020 1.10.2018 to 31.12.2019 1.1.2020 to 31.12.2020 1.10.2018 to 31.12.2019 RM’000 RM’000 RM’000 RM’000 Profit before taxation 268,958 306,939 276,794 268,354 Tax at the applicable statutory tax rate of 24% 64,550 73,665 66,431 64,405 Tax effects of:- Tax-exempt income (73,165) (86,321) (15) (16) Non-taxable income - (869) (72,000) (72,000) Non-deductible expenses 5,170 9,405 3,163 4,817 Deferred tax assets not recognised during the financial year/period 5,205 6,491 2,585 3,017 Utilisation of deferred tax assets previously not recognised (147) (306) - - Effects of differential in tax rates of a foreign subsidiary (2) (5) - - Underprovision in the previous financial year/ period: - current tax 173 2,063 - 2,246 - deferred tax (20) (50) - - Reversal of deferred tax assets - 710 - - 1,764 4,783 164 2,469