Dagang NeXchange Berhad Annual Report 2019

FINANCIAL STATEMENTS annual report 2019 161 26. TAX EXPENSE Group Company 2019 2018 2019 2018 RM’000 RM’000 RM’000 RM’000 Recognised in profit or loss Current tax expense - Current year 15,404 14,524 2,068 2,000 - (Over)/Underprovision in prior year (1,843) 1,751 (336) 1,061 Total current tax expense 13,561 16,275 1,732 3,061 Deferred tax expense (Note 10) - Current year (1,932) (1,925) - - - Underprovision in prior year - - - - Total deferred tax expense (1,932) (1,925) - - Total tax expense 11,629 14,350 1,732 3,061 Reconciliation of tax expense Net profit after tax 35,497 51,892 5,878 19,028 Total tax expense 11,629 14,350 1,732 3,061 Zakat payment 451 405 - - Net profit excluding tax and Zakat 47,577 66,647 7,610 22,089 Income tax using Malaysian tax rate of 24% (2018: 24%) 11,418 15,995 1,826 5,301 Income not subject to tax (955) (2,595) (1,417) (4,532) Expenses not deductible for tax purposes 3,078 1,049 1,648 1,280 Share of profit of equity-accounted associates (4,382) (5,282) - - Tax exempt income due to pioneer status (73) (24) - - Effect of unrecognised deferred tax assets 4,355 3,714 11 - Recognition of previously unrecognised deferred tax assets - (300) - (49) Effects of differential in tax rate of subsidiaries 31 42 - - 13,472 12,599 2,068 2,000 (Over)/Underprovision of tax expense in prior year (1,843) 1,751 (336) 1,061 Total tax expense 11,629 14,350 1,732 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 18 November 2014 to 17 November 2019.