Notes to the Financial Statements - Swissco Holdings Limited

Notes
to the Financial Statements
For the financial year ended 31 December 2009
8. Income taxes
(a)
Income tax expense
Group
2009 2008
$ $
Tax expense attributable to profit is made up of:
Current income tax 740,921 430,000
Deferred income tax 713,507 –
1,454,428 430,000
(Over)/under provision in prior financial years
- Current income tax (504,003) (174,615)
- Deferred income tax 272,143 –
(231,860) (174,615)
1,222,568 255,385
(b)
The tax expense on profit differs from the amount that would arise using the Singapore standard
rate of income tax is explained below:
Group
2009 2008
$ $
Profit before tax 25,399,273 23,846,029
Tax calculated at a tax rate of 17% (2008: 18%) 4,317,876 4,292,285
Effects of
- Singapore statutory stepped income exemption (77,775) (82,350)
- Income not subject to tax (3,219,701) (4,272,267)
- Expenses not deductible for tax purposes 434,028 492,332
Tax charge 1,454,428 430,000
During the financial year, the Singapore corporate tax rate was reduced from 18% to 17% for the year
of assessment 2010 and onwards.
55 Annual Report 2009 Swissco International Limited