Megachem Limited Annual Report 2015 94 Notes to the Financial Statements 31 December 2015 7. Income tax expense 7A. Components of tax expense recognised in profit or loss include: Group 2015 2014 $ $ Current tax expense: Current tax expense 1,120,725 1,075,444 Under adjustments to current tax in respect of prior periods 1,791 10,436 Subtotal 1,122,516 1,085,880 Deferred tax (income): Deferred tax (income) (21,059) (18,941) Subtotal (21,059) (18,941) Total income tax expense 1,101,457 1,066,939 The reconciliation of income taxes below is determined by applying the Singapore corporate tax rate where the parent is domiciled. The income tax expense varied from the amount of income tax expense determined by applying the Singapore income tax rate of 17.0 % (2014: 17.0 %) to profit before income tax as a result of the following differences: Group 2015 2014 $ $ Profit before tax 4,385,551 4,259,148 Less: share of profit of associated companies (897,508) (1,011,364) 3,488,043 3,247,784 Income tax expense at the above rate 592,967 552,123 Not deductible items 73,985 50,765 Tax exemptions (37,194) (30,585) Under adjustments to current tax in respect of prior periods 1,791 10,436 Effect of different tax rates, rebates and incentives 301,730 227,762 Unrecognised deferred tax asset 168,178 256,438 Total income tax expense 1,101,457 1,066,939 7B. Deferred tax income recognised in profit or loss include: Group 2015 2014 $ $ Deferred tax liabilities: Excess of net book value of plant and equipment over tax values 13,029 20,580 Deferred tax assets: Provisions (34,088) (39,521) Total deferred tax income recognised in profit or loss (21,059) (18,941)
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