Notestothefinancialstatements
For the financial year ended31December 2015
8.
Income taxexpense
(a)
Majorcomponentsof income taxexpense
Themajor componentsof income taxexpense for the yearsended31December are:
Group
2015
2014
$’000
$’000
Statement of comprehensive income:
Current income tax:
– Current income taxation
1,641
2,935
– (Over)/underprovision in respect of prior years
(489)
16
1,152
2,951
Deferred income tax:
– Originationand reversal of temporary difference (Note14)
453
(142)
– Underprovision in respect of prior years
355
–
808
(142)
Income taxexpense recognised in the statement of comprehensive income
1,960
2,809
8.
Income taxexpense (cont’d)
(b)
Relationshipbetween taxexpenseandaccountingprofit
A reconciliationbetween taxexpenseand theproduct of accountingprofitmultipliedby theapplicablecorporate tax rate for the yearsended31December
areas follows:
Group
2015
2014
$’000
$’000
Accountingprofit before tax
11,124
16,326
Income taxexpenseat theapplicable tax rateof 17% (2014: 17%)
1,891
2,775
Adjustments for taxeffect of:
Movement of deferred income taxnot recognised
(14)
33
Incomenot subject to taxation
(216)
(143)
Tax incentive
(216)
(115)
Non-deductibleexpenses
742
381
(Over)/underprovision in respect of prior years
(134)
16
Taxexemption
(86)
(78)
Others, net
(7)
(60)
Income taxexpense recognised inprofit or loss
1,960
2,809
A loss-transfer system of group relief (the “Group Relief System”) for companies was introduced in Singapore with effect from year of assessment
2003. Under the Group Relief System, a company belonging to a group of entities may transfer its current year’s unabsorbed capital allowances,
unabsorbed trade losses andunabsorbeddonations (loss items) to another company belonging to the same group, to be deducted against the latter’s
assessable income.
102
103
BAKERTECHNOLOGYlimited
ANNUAL REPORT 2015
