Maxis Berhad
Annual Report 2015
page
112
Notes to the Financial Statements
31 December 2015
12 TAX EXPENSES
Group
Company
Note
2015
RM’000
2014
RM’000
2015
RM’000
2014
RM’000
Current tax:
- current year
663,541
699,308
120
900
- over accrual in prior years
(7,881)
(448)
(112)
(310)
655,660
698,860
8
590
Deferred tax:
- origination and reversal of temporary differences
69,643
32,697
-
-
- recognition and reversal of prior years’
temporary differences
(13,660)
(150)
-
-
- changes in tax rate
1,856
(20,207)
-
-
23
57,839
12,340
-
-
Tax expenses
713,499
711,200
8
590
The Malaysian income tax is calculated at the statutory tax rate of 25% (2014: 25%) on the estimated chargeable profit for the financial year.
Subsequent to the announcement of reduction in the corporate tax rate to 24% with effect from year of assessment 2016 in the Malaysian Budget
2014, the computation of deferred tax assets and deferred tax liabilities has been adjusted accordingly to reflect such changes. Taxes in foreign
jurisdictions are calculated at the rates prevailing in the respective jurisdictions.
The explanation of the relationship between the tax expenses and profit before tax is as follows:
Group
Company
2015
%
2014
%
2015
%
2014
%
Numerical reconciliation between the Malaysian
tax rate and average effective tax rate
Malaysian tax rate
25
25
25
25
Tax effects of:
- expenses not deductible for tax purposes
5
5
6
6
- income not subject to tax
-
-
(31)
(31)
- changes in tax rate
-
(1)
-
-
- recognition of prior years’ temporary differences
(1)
-
-
-
Average effective tax rate
29
29
-
-
