104 / 152
Notes to the
financial statements
For the financial year ended 31 December 2018
102
B A K E R T E C H N O L O G Y
L I M I T E D
8.
Income tax expense/(credit)
(a)
Major components of income tax expense/(credit)
The major components of income tax expense/(credit) for the years ended 31 December are:
Group
2018
2017
$’000
$’000
Statement of comprehensive income:
Current income tax:
– Current income taxation
7
–
– Over provision in respect of prior years
–
(413)
7
(413)
Deferred income tax:
– Origination and reversal of temporary difference (Note 16)
131
(180)
Income tax credit recognised in the
statement of comprehensive income
138
(593)
(b)
Relationship between tax expense/(credit) and accounting profit/(loss)
A reconciliation between tax expense/(credit) and the product of accounting profit/(loss)
multiplied by the applicable corporate tax rate for the years ended 31 December are as
follows:
Group
2018
2017
$’000
$’000
Profit / (loss) before tax
14,453
(11,283)
Income tax credit at the applicable tax rate of
17% (2017:17%)
2,457
(1,918)
Adjustments for tax effect of:
Deferred tax assets not recognised
1,485
1,907
Deferred tax benefits utilised
(129)
–
Income not subject to taxation
(4,201)
–
Tax incentive
(4)
(1,185)
Net marine offshore income not subject to tax
(1)
(1,364)
–
Non-deductible expenses
1,337
941
Tax effect of share of results of associates
527
–
Over provision in respect of prior years
–
(413)
Others, net
30
75
Income tax expense / (credit) recognised in profit or
loss
138
(593)
(1)
This represents net income exempted under Section 13A and tax exemption under Section 43(6) of the
Singapore Income Tax Act