FGV Annual Report 2016

FELDA GLOBAL VENTURES HOLDINGS BERHAD 224 FINANCIAL REPORT NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016 14 TAXATION Group Company 2016 RM'000 2015 RM'000 (Restated) 2016 RM'000 2015 RM'000 Malaysian income tax: - In respect of current financial year 117,293 183,832 - - - In respect of prior financial year (25,240) (15,792) - 1,499 Foreign income tax: - In respect of current financial year 8,470 7,950 - - Deferred tax (Note 50) 75,555 (39,819) 24,873 - Tax expense 176,078 136,171 24,873 1,499 A reconciliation of income tax expense applicable to 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 2016 RM'000 2015 RM'000 (Restated) 2016 RM'000 2015 RM'000 Profit/(loss) before taxation after zakat 245,301 428,652 (46,062) 284,503 Malaysian corporate tax rate of 24% (2015: 25%) 58,872 107,163 (11,055) 71,126 Tax effect of: - different tax rates in other countries 6,258 3,196 - - - expenses not deductible for tax purposes 93,514 107,442 58,349 64,464 - changes in tax rate - 3,219 - - - income not subject to tax (52,602) (48,405) (59,766) (139,572) - (over)/under provision of income tax in prior year (25,240) (15,792) - 1,499 - deferred tax assets not recognised 44,060 - 12,472 - - tax incentive (6,734) (7,327) - - - temporary differences previously not recognised as deferred tax 57,031 (14,084) 24,873 - - others 919 759 - 3,982 Tax expense 176,078 136,171 24,873 1,499