NOTES TO THE FINANCIAL STATEMENTS For the Financial Year Ended 31 December 2025 (cont’d) 35. Taxation (CONT’D) A reconciliation of income tax expenses applicable to profit before tax at the statutory tax rate to income tax expenses at the effective income tax of the Group and of the Company are as follows: Group Company 2025 2024 2025 2024 RM’000 RM’000 RM’000 RM’000 Profit before tax 868,576 719,234 225,586 227,027 At Malaysian statutory tax rate of 24% (2024: 24%) 208,459 172,616 54,141 54,486 Income exempted from tax (218,986) (192,018) - - Income not subject to tax (26,880) (8,453) (78,000) (78,311) Expenses not deductible for tax purposes 17,692 8,748 5,908 2,623 Movement of deferred tax assets not recognised 21,621 23,223 17,951 21,352 (Over)/Under provision in prior financial years - current tax (647) 2,780 (150) - - deferred tax (1,910) 4,288 (1,910) - (651) 11,184 (2,060) 150 The Group and the Company have unutilised business losses and unabsorbed capital allowances for carry forward to offset future taxable profits as follows: Group Company 2025 2024 2025 2024 RM’000 RM’000 RM’000 RM’000 Unutilised business losses 256,163 186,396 206,567 139,108 Unabsorbed capital allowances 119,628 59,685 36,118 33,035 375,791 246,081 242,685 172,143 Based on the current legislation, any unutilised business losses shall be carried forward for a maximum period of ten consecutive years of assessment immediately following that year of assessment, whereas the unabsorbed capital allowances are allowed to be carried forward indefinitely. FINANCIAL STATEMENTS 265
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