Press Metal Annual Report 2023

Financial Statements Financial Statements Press Metal Aluminium Holdings Berhad 264 265 Integrated Annual Report 2023 Notes to the Financial Statements Notes to the Financial Statements 23. TAX EXPENSE Recognised in profit or loss Group Company 2023 RM’000 2022 RM’000 2023 RM’000 2022 RM’000 Income tax expense 127,857 185,287 3,001 26,086 Share of tax of equity-accounted associates 1,947 12,321 - - Total income tax expense 129,804 197,608 3,001 26,086 Major components of income tax expense include: Current tax expense Current year 71,829 115,311 2,212 2,046 Prior year (5,100) 4,779 133 494 Real property gains tax 11 - - - Total current tax recognised in profit or loss 66,740 120,090 2,345 2,540 Deferred tax expense Origination and reversal of temporary differences 70,783 65,095 690 23,586 (Over)/Under provision in prior year (9,666) 102 (34) (40) Total deferred tax recognised in profit or loss (Note 11) 61,117 65,197 656 23,546 Share of tax of equity-accounted associates 1,947 12,321 - - Total income tax expense 129,804 197,608 3,001 26,086 23. TAX EXPENSE (CONT’D) Reconciliation of tax expense Group Company 2023 RM’000 2022 RM’000 2023 RM’000 2022 RM’000 Profit for the year 1,517,992 1,766,541 625,331 501,028 Total income tax expense 129,804 197,608 3,001 26,086 Profit excluding tax 1,647,796 1,964,149 628,332 527,114 Income tax calculated using Malaysian tax rate of 24% (2022: 24%) 395,471 471,396 150,800 126,507 Effect of income subject to prosperity tax - 11,114 - - Effect of tax rates in foreign jurisdictions 481 431 - - Non-deductible expenses 54,688 59,540 28,710 30,104 Non-taxable income (33,268) (43,619) (176,609) (130,979) Tax incentives (291,609) (335,924) - - Real property gain tax 11 - - - Movement of unrecognised deferred tax assets 18,796 29,789 - - (Over)/Under provision in prior years (14,766) 4,881 100 454 129,804 197,608 3,001 26,086 Non-taxable income The non-taxable income of the Company for the financial year ended 31 December 2023 mainly relate to dividend income from subsidiaries and an associate (2022: dividend income from subsidiaries and an associate). Tax incentives As disclosed in Note 11, PMBTU was awarded Pioneer Status by the MIDA, which entitled PMBTU exemption from tax for a period of 15 years from 1 January 2013 to 31 December 2027 on 100% of statutory income derived from the production of aluminium products.

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