KENANGA ANNUAL REPORT 2020

240 5 1 2 3 4 6 7 FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS 31 December 2020 40. TAXATION AND ZAKAT Group Bank 2020 RM’000 2019 RM’000 2020 RM’000 2019 RM’000 Current income tax: Tax expense for the financial year 44,536 14,345 38,220 11,695 Under provision in prior years 714 343 927 326 45,250 14,688 39,147 12,021 Deferred tax (Note 19): Relating to origination and reversal of temporary differences (11,293) 75 (10,761) 265 (Under)/Over provision of deferred tax assets in prior years (1,972) 1,429 (21) 1,428 (13,265) 1,504 (10,782) 1,693 Zakat 445 373 430 357 Total income tax expense 32,430 16,565 28,795 14,071 Domestic income tax is calculated at the statutory tax rate of 24% (2019: 24%) on the estimated chargeable profit for the financial year. A reconciliation of taxation applicable to profit before taxation at the statutory income tax rate to taxation at the effective tax rate of the Group and of the Bank is as follows: Group Bank 2020 RM’000 2019 RM’000 2020 RM’000 2019 RM’000 Profit before taxation and zakat 134,715 42,951 106,938 40,376 Taxation at Malaysian statutory income tax rate of 24% (2019: 24%) 32,332 10,308 25,665 9,690 Effect of income not subject to tax (2,837) (688) (944) (405) Effect of expenses not deductible for tax purposes 3,111 2,549 2,738 2,675 Loss not deductible for tax purposes - 1,818 - - Utilisation of previously unrecognised tax loss and unabsorbed capital allowances - (110) - -