Serba Dinamik Annual Report 2016

2016 Annual Report 145 NOTES TO THE FINANCIAL STATEMENTS (Cont’d) 20. TAX EXPENSE (CONT’D) Reconciliation of tax expense Group Company 25.05.2016 - 2.12.2015 - 31.12.2016 31.12.2016 RM RM Profit/(Loss) after tax 151,439,943 (266,760) Total tax expense 15,164,044 – Profit excluding tax 166,603,987 (266,760) Income tax calculated using Malaysian tax rate of 24% ^ 39,985,000 (64,022) Tax exempt income under Labuan Business Activity Tax * (32,030,000) – Effect of tax rate in foreign jurisdictions (998,186) – Non-deductible expenses 9,166,000 64,022 Profit of foreign source not subject to Malaysian tax (1,231,000) – 14,891,814 – Under provision in prior period 272,230 – Total tax expense 15,164,044 – ^ In the Malaysian Budget 2014, it was announced that corporate income tax rate will be reduced to 24% for period of assessment 2016 (“YA 2016”) onwards. Consequently, any temporary differences expected to be reversed in YA 2016 onwards are measured using this rate. * Under the preferential tax treatment given to Labuan entities incorporated or register under the Labuan Companies Act 1990, a subsidiary has qualified and elected to pay tax of RM20,000 per annum. 21. COMPENSATIONS TO KEY MANAGEMENT PERSONNEL Compensations paid/payable to key management personnel are as follows: Group Company 25.05.2016 - 2.12.2015 - 31.12.2016 31.12.2016 RM RM Directors of the Company - fees 298,930 – - remuneration 519,810 – - other short-term employee benefits 180,839 – 999,579 – Other key management personnel - remuneration 201,894 – - other short-term employee benefits 120,060 – 321,954 – 1,321,533 – Other key management personnel comprise persons other than the Directors of group entities, having authority and responsibility for planning, directing and controlling the activities of the group entities either directly or indirectly.