AL-SALAM REIT ANNUAL REPORT 2020

138 AL-SALĀM REIT NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2020 (CONT’D) 7. TAX (CONT’D) Deferred tax liability has been provided for the investment properties held by Al-Salām REIT at 10% which reflects the expected manner of recovery of the investment properties, i.e. recovered through sale. Reconciliation of the tax expense is as follows: Group Fund 2020 2019 2020 2019 RM RM RM RM (Loss)/profit before tax (12,285,065) 36,152,644 (12,225,870) 36,218,863 Tax at the statutory tax rate of 24% (2019: 24%) (2,948,416) 8,676,635 (2,934,209) 8,692,527 Expenses not deductible for tax purposes 8,015,296 448,054 8,008,333 448,054 Income not subject to tax (5,066,880) (9,124,689) (5,074,124) (9,140,581) Deferred tax recognised at different tax rate 1,245,581 - 1,245,581 - 1,245,581 - 1,245,581 - Taxation of the unitholders Pursuant to Section 109D(2) of the Malaysian Income Tax Act 1967, where 90% or more of the Real Estate Investment Trust’s (“REIT”) total taxable income is distributed by the REIT, distributions to unitholders (other than resident corporate investors) will be subject to tax based on a withholding tax mechanism at the following rates: Unitholders Tax rate Individuals and all other non-corporate investors such as institutional investors 10% Non-resident corporate investors 24% Resident corporate investors are required to report the distributions in their normal corporate tax return and subject to the normal corporate tax rate of 24%. 8. (LOSS)/EARNINGS PER UNIT The gross and net earnings per unit, which are calculated based on the profit before tax and profit for the financial year of the Group and of the Fund, respectively, divided by the weighted average number of units in circulation as of 31 December 2020, are as follows: Group Fund 2020 2019 2020 2019 RM RM RM RM (Loss)/earnings attributable to unitholders: (Loss)/profit before tax (12,285,065) 36,152,644 (12,225,870) 36,218,863 (Loss)/profit for the year (13,530,646) 36,152,644 (13,471,451) 36,218,863 Number of units 580,000,000 580,000,000 580,000,000 580,000,000 Gross (loss)/earnings per unit (sen) (2.12) 6.23 (2.11) 6.24 Net (loss)/earnings per unit (sen) (2.33) 6.23 (2.32) 6.24