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 substance 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. On 2 November 2021, MoT notified the Malaysian Shipowners’ Association that MoF has approved for a deferment in the imposition of the annual tonnage fee to latest by 31 December 2023. Based on this latest development, the Group would now be able to continue to enjoy the 100% shipping tax exemption up to YA2023 on the basis that the substance requirements are duly met. The taxation charge of the Group and the Corporation is attributable to tax in respect of other activities. 12. EARNINGS/(LOSS) PER SHARE Basic earnings/(loss) per share is calculated by dividing profit/(loss) 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 earnings/(loss) per share. Group 2021 2020 Profit/(loss) after taxation attributable to equity holders of the Corporation (RM’000) 1,831,264 (43,067) 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 earnings/(loss) per share (sen) 41.0 (1.0) Diluted earnings/(loss) per share (sen) 41.0 (1.0) 13. DIVIDENDS 2021 2020 RM’000 RM’000 Dividends recognised during the year: In respect of financial year ended 31 December 2019: 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 Fourth tax exempt dividend of 12.0 sen per share 535,649 – In respect of financial year ended 31 December 2021: 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 1,473,035 A fourth tax exempt dividend in respect of the financial year ended 31 December 2021 of 12.0 sen per share amounting to a dividend payable of RM535,649,000 will be paid on 16 March 2022. The fourth tax exempt dividend in respect of the financial year ended 31 December 2021 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 2022. NOTES TO THE FINANCIAL STATEMENTS 31 December 2021 NOTES TO THE FINANCIAL STATEMENTS 31 December 2021 MISC Berhad 350 Integrated Annual Report 2021 MISC Berhad Integrated Annual Report 2021 351 FINANCIAL STATEMENTS FINANCIAL STATEMENTS
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