122 MEGACHEM LIMITED Notes to The Financial Statements 31 December 2024 8. Income tax expense (cont’d) 8A. Components of tax expense recognised in profit or loss include (cont’d) The reconciliation of income taxes below is determined by applying the Singapore corporate tax rate where the Company is domiciled. The income tax expense varied from the amount of income tax expense determined by applying the Singapore income tax rate of 17% (2023: 17%) to profit or loss before income tax as a result of the following differences: Group 2024 2023 $ $ Profit/(loss) before tax 8,692,788 (5,339,456) Less: share of profit of associates (1,222,096) (1,171,091) 7,470,692 (6,510,547) Income tax expense/(income) at the above rate 1,270,018 (1,106,793) Tax effect of non-deductible expenses 796,974 778,798 Tax effect of tax exemptions (50,933) (17,425) Tax effect of different tax rates in other jurisdictions, tax rebates and incentives 47,062 93,072 (Over)/under adjustments to the current and deferred tax in respect of prior years (125,294) 70,986 Deferred tax assets not recognised – 533,625 Utilisation of deferred tax assets previously not recognised (1,264,703) – Withholding taxes 106,213 103,422 Total income tax expense 779,337 455,685 There are no income tax consequences of dividends to owners of the Company. 8B. Deferred tax income recognised in profit or loss Group 2024 2023 $ $ Deferred tax liabilities: Excess of net book value of plant and equipment over tax values 120,123 (113,054) Amount in connection with interests in associate 95,000 (7,000) Deferred tax assets: Provisions (197,190) (82,400) Tax loss carryforwards (102,312) (2,495) Total deferred tax income recognised in profit or loss (84,379) (204,949)
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