7. Tax credit/(expenses) (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 2021 2020 2021 2020 RM RM RM RM Profit/(loss) before tax 3,187,189 (12,285,065) 2,113,933 (12,225,870) Tax at the statutory tax rate of 24% (2020: 24%) 764,925 (2,948,416) 507,344 (2,934,209) Expenses not deductible for tax purposes 4,043,762 8,015,296 4,015,530 8,008,333 Income not subject to tax (4,808,687) (5,066,880) (4,522,874) (5,074,124) Deferred tax recognised at different tax rate 16,833 (1,245,581) 16,833 (1,245,581) 16,833 (1,245,581) 16,833 (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. Earnings/(loss) per unit The gross and net earnings/(loss) per unit, which are calculated based on the profit/(loss) before tax and profit/(loss) 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 2021, are as follows: Group Fund 2021 2020 2021 2020 RM RM RM RM Earnings/(loss) attributable to unitholders: Profit/(loss) before tax 3,187,189 (12,285,065) 2,113,933 (12,225,870) Profit/(loss) for the year 3,204,022 (13,530,646) 2,130,766 (13,471,451) Number of units 580,000,000 580,000,000 580,000,000 580,000,000 Gross earnings/(loss) per unit (sen) 0.55 (2.12) 0.36 (2.11) Net earnings/(loss) per unit (sen) 0.55 (2.33) 0.37 (2.32) A L - S A L Ā M R E I T A N N U A L R E P O R T 2 0 2 1 156 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2021 (CONT’D)
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