MISC Integrated Annual Report 2020

11. TAXATION (CONT’D.) Section 54A of the Income Tax Act, 1967 was amended effective from Year of Assessment (“YA”) 2012, in which the tax exemption on shipping profits was reduced from 100% to 70%. The implementation of the amended Section 54A, however, was deferred and on 10 July 2020, the Ministry of Finance (“MoF”) issued an approval letter for the extension of the 100% shipping tax exemption up to YA2023 subject to the following two conditions to be implemented by the Ministry of Transport (“MoT”): a) Each Malaysian shipowner to comply with the minimum requirements in terms of annual operating expenditure and number of full-time employees. MoT has been requested to establish the framework for each category of vessels; and b) MoT to develop a framework and implement the imposition of annual tonnage fee to Malaysian shipowners by 1 January 2022. In respect of the imposition of tonnage fee, MoF has indicated in their letter that if MoT fails to start imposing tonnage fee from 1 January 2022, the 100% tax exemption will be reverted to 70% from YA2022. The Group has available options to ensure that the Group continues to enjoy the tax benefit arising from shipping income. 12. (LOSS)/EARNINGS PER SHARE Basic (loss)/earnings per share is calculated by dividing (loss)/profit for the year attributable to ordinary equity holders of the Corporation by the weighted average number of ordinary shares outstanding during the financial year. The Group does not have any financial instrument which may dilute its basic (loss)/earnings per share. Group 2020 2019 (Loss)/profit after taxation attributable to equity holders of the Corporation (RM’000) (43,067) 1,426,355 Number of ordinary shares in issue (’000) 4,463,794 4,463,794 Weighted average number of ordinary shares in issue (’000) 4,463,794 4,463,794 Basic (loss)/earnings per share (sen) (1.0) 32.0 Diluted (loss)/earnings per share (sen) (1.0) 32.0 13. DIVIDENDS 2020 2019 RM’000 RM’000 Dividends recognised during the year: In respect of financial year ended 31 December 2018: Fourth tax exempt dividend of 9.0 sen per share – 401,737 In respect of financial year ended 31 December 2019: First tax exempt dividend of 7.0 sen per share – 312,462 Second tax exempt dividend of 7.0 sen per share – 312,462 Third tax exempt dividend of 7.0 sen per share – 312,462 Fourth tax exempt dividend of 9.0 sen per share 401,737 – Special tax exempt dividend of 3.0 sen per share 133,912 – In respect of financial year ended 31 December 2020: First tax exempt dividend of 7.0 sen per share 312,462 – Second tax exempt dividend of 7.0 sen per share 312,462 – Third tax exempt dividend of 7.0 sen per share 312,462 – 1,473,035 1,339,123 A fourth tax exempt dividend in respect of the financial year ended 31 December 2020 of 12.0 sen per share amounting to a dividend payable of RM535,649,000 will be paid on 16 March 2021. The fourth tax exempt dividend in respect of the financial year ended 31 December 2020 is not reflected in the current year’s financial statements. The dividend will be accounted for in equity as an appropriation of retained profits in the financial year ending 31 December 2021. 31 December 2020 NOTES TO THE FINANCIAL STATEMENTS 31 December 2020 NOTES TO THE FINANCIAL STATEMENTS 10 372 10 373 /// Leadership / Governance / Financial Statements / Additional Information / Annual General Meeting ////// /// Leadership / Governance / Financial Statements / Additional Information / Annual General Meeting ////// Section Section MISC Berhad / Integrated Annual Report 2020 MISC Berhad / Integrated Annual Report 2020