Financial Statements - Mewah Group

Building Capabilities
Notes to the Financial Statements
For the financial year ended 31 December 2011
11. Income tax (credit)/expense
Tax (credit)/expense attributable to profit is made up of:
Group
2011 2010
US$’000 US$’000
Current income tax
- Singapore 1,286 12,408
- Foreign 1,458 15,180
2,744 27,588
Deferred income tax 2,150 (12,556)
Income tax relating to current year 4,894 15,032
(Over)/under provision in prior financial years
- Current income tax (3,615) 634
- Deferred income tax (2,373) 582
(Over)/under provision in prior financial years (5,988) 1,216
Income tax as per Consolidated Income Statement (1,094) 16,248
Income tax relating to current year
The income tax on profit differs from the amount that would arise using the tax calculated at domestic rates of income tax as
explained below:
Group
2011 2010
US$’000 US$’000
Profit before tax 38,164 108,688
Tax calculated at domestic rates applicable to profits in the respective countries 7,384 19,109
Effects of:
- Tax incentives (8,893) (6,928)
- Expenses not deductible for tax purposes 5,837 2,576
- Income not subject to tax (50) (234)
- Deferred tax benefits not recognised 916 438
- Others (300) 71
4,894 15,032
The Singapore corporate tax rate was 17% for the financial years 2011 and 2010.
The Malaysia corporate tax rates was 25% for the financial years 2011 and 2010.
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