Dagang NeXchange Berhad Annual Report 2018

24. TAX EXPENSE Group Company 2018 2017 2018 2017 RM’000 RM’000 RM’000 RM’000 Recognised in profit or loss Current tax expense - Current year 14,524 13,402 2,000 - - Underprovision in prior year 1,751 305 1,061 - Total current tax expense 16,275 13,707 3,061 - Deferred tax expense (Note 9) - Current year (1,925) (2,807) - - - Overprovision in prior year - - - - Total deferred tax expense (1,925) (2,807) - - Total tax expense 14,350 10,900 3,061 - Reconciliation of tax expense Net profit after tax 51,892 55,191 19,028 41,614 Total tax expense 14,350 10,900 3,061 - Zakat payment 405 500 - - Net profit excluding tax and Zakat 66,647 66,591 22,089 41,614 Income tax using Malaysian tax rate of 24% (2017: 24%) 15,995 15,982 5,301 9,987 Income not subject to tax (2,595) (1,861) (4,532) (10,591) Expenses not deductible for tax purposes 1,049 1,545 1,280 643 Share of profit of equity-accounted associates (5,282) (5,328) - - Tax exempt income due to pioneer status (24) (239) - - Effect of unrecognised deferred tax assets 3,714 1,237 - - Recognition of previously unrecognised deferred tax assets (300) (734) (49) (39) Effects of differential in tax rate of subsidiary 42 (7) - - 12,599 10,595 2,000 - Underprovision of tax expense in prior year 1,751 305 1,061 - Total tax expense 14,350 10,900 3,061 - A subsidiary of the Group has been granted the MSC Malaysia status. This qualifies the subsidiary for the Pioneer Status incentive under the Promotion of Investments Act 1986. The subsidiary will enjoy full exemption from income tax on its statutory income from pioneer activities from 16 July 2014 to 15 July 2019. 153 Annual Report 2018 Notes to the Financial Statements (CONTINUED) FINANCIAL STATEMENTS