annual report 2014
I
Notes to the Financial Statements
31 December 2014 (Cont’d)
93
21. TAX EXPENSE
Group
2014
2013
RMB’000
RMB’000
Current tax expense based on profit for the financial year
- PRC income tax
19,585
33,488
Deferred tax (Note 15)
Relating to origination and reversal of temporary differences
(1,956)
777
17,629
34,265
Tax expense for respective taxation authorities are calculated at the rates prevailing in those jurisdictions.
The numerical reconciliation between the tax expense and the product of accounting profit multiplied by the applicable
tax rates of the Group are as follows:
Group
2014
2013
RMB’000
RMB’000
Profit before tax
67,208
137,840
Tax at the domestic rates applicable to profits in the countries concerned
16,802
34,460
Tax effect in respect of:
Income not subject to tax
(516)
(3,412)
Non-deductible expenses
1,714
2,272
Lower tax rate in foreign jurisdiction
195
(998)
Deferred tax assets not recognised
1,390
1,166
(Reversal of)/Expected withholding tax on undistributable profits of
PRC subsidiaries
(1,956)
777
17,629
34,265
The Company was incorporated in Bermuda under the Bermuda Companies Act as an exempted company and is
not subject to tax on income under the Bermuda Tax Law. Hence, no tax reconciliation has been prepared.
The amounts of temporary differences for which no deferred tax assets have been recognised in the statements of
financial position are as follows:
Group
2014
2013
RMB’000
RMB’000
Unused tax losses
- Expire by 31 December 2014
–
2,119
- Expire by 31 December 2015
1,593
1,593
- Expire by 31 December 2016
1,074
1,074
- Expire by 31 December 2017
578
578
- Expire by 31 December 2018
4,664
4,664
- Expire by 31 December 2019
5,560
–
13,469
10,028
