FGV Audited Financial Statements 2019

95 01 S E C T I O N NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 AUDITED FINANCIAL STATEMENTS 2019 16 TAXATION (CONTINUED) A reconciliation of income tax expense applicable to (loss)/profit before taxation after zakat at the Malaysian statutory income tax rate to income tax expense at the effective income tax rate of the Group and of the Company is as follows: Group Company 2019 RM’000 2018 RM’000 (Restated) 2019 RM’000 2018 RM’000 (Restated) (Loss)/profit before taxation after zakat (345,225) (1,043,570) (51,889) 116,639 Malaysian corporate tax rate of 24% (2018: 24%) (82,854) (250,457) (12,453) 27,993 Tax effect of: - different tax rates in other countries 1,182 (2,575) - - - expenses not deductible for tax purposes 115,341 222,222 130,881 30,235 - income not subject to tax (50,103) (16,308) (100,549) (56,713) - over provision of income tax in prior financial year (861) (1,957) (452) (172) - temporary differences not recognised as deferred tax 88,159 168,317 10,778 - - tax incentive (7,252) - - - - temporary differences previously not recognised as deferred tax (35,365) (29,058) - (29,058) - others (2,316) 9,850 - - Tax expense/(credit) 25,931 100,034 28,205 (27,715) 17 DIVIDEND There were no dividends declared and paid during the financial year (2018: Nil) The Board of Directors are recommending the payment of a final single tier dividend of 2.0 sen per ordinary share amounting to RM72.96 million, which is not taxable in the hands of the shareholders pursuant to paragraph 12B of Schedule 6 of the Income Tax Act, 1967, and which is subject to the approval of the shareholders at the forthcoming Annual General Meeting of the Company.