123 ANNUAL REPORT 2024 Notes to The Financial Statements 31 December 2024 8. Income tax expense (cont’d) 8C. Deferred tax balance in the statement of financial position The deferred tax amounts and movements during the year are as follows: Group Company 2024 2023 2024 2023 $ $ $ $ Deferred tax liabilities: Excess of net book value of plant and equipment over tax values 296,161 176,038 59,000 39,000 Amount in connection with interests in associate 406,000 311,000 406,000 311,000 Total deferred tax liabilities 702,161 487,038 465,000 350,000 Deferred tax assets: Provisions (913,326) (716,136) (428,000) (350,000) Tax loss carryforwards (259,118) (156,806) – – Total deferred tax assets (1,172,444) (872,942) (428,000) (350,000) Net deferred tax (assets) / liabilities (470,283) (385,904) 37,000 – Disclosed in the statement of financial position as: Deferred tax assets (925,283) (804,755) (369,000) (350,000) Deferred tax liabilities 455,000 418,851 406,000 350,000 It is impracticable to estimate the amount expected to be settled or used within one year. Deferred income tax assets are recognised for tax losses carried forward to the extent that realisation of the related tax benefits through future taxable profits is probable. The Group has unrecognised tax losses and capital allowances of $3,321,000 and $90,000 (2023: $10,679,000 and $310,000) respectively which can be carried forward and used to offset against future taxable income subject to meeting certain statutory requirements by those companies with unrecognised tax losses and capital allowances in their respective countries of incorporation. These tax losses have no expiry date except for $1,881,000 (2023: $1,380,000) which will expire between 2025 to 2032 (2023: expire between 2024 to 2031). Unutilised capital allowances do not have expiry dates. For the Singapore companies, the realisation of the future income tax benefits from tax losses carry forwards and temporary differences from capital allowances is available for an unlimited future year, subject to conditions imposed by law including the retention of majority shareholders as defined. A deferred tax liability or asset is recognised for all taxable temporary differences associated with investments in subsidiaries and associates except where the Group is able to control the timing of the reversal of the taxable temporary difference and it is probable that the taxable temporary difference will not reverse in the foreseeable future or for deductible temporary differences, they will not reverse in the foreseeable future and they cannot be utilised against taxable profits. 9. Dividends Group and Company 2024 2023 $ $ Final tax exempt dividend paid of Nil cents (2023: tax exempt 1.2 cents) per share in respect of the previous reporting year – 1,599,600 Interim tax exempt dividend paid of 0.5 cents (2023: tax exempt Nil cents) per share in respect of current reporting year 666,500 – Total dividends paid in the year 666,500 1,599,600 In respect of the current reporting year, the directors have proposed that a final tax exempt dividend of 0.5 cents per share, subject to the approval by shareholders at the next Annual General Meeting to be convened. The dividend has not been included as liability in these financial statements.
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