8. INCOME TAX EXPENSE 8A. Components of tax expense recognised in profit or loss include Group 2025 2024 $ $ Current tax expense: Current year 333,712 772,527 Over adjustments to current tax in respect of prior years (141,849) (15,024) Withholding taxes 97,552 106,213 Subtotal 289,415 863,716 Deferred tax (income)/expense: Current year 69,649 25,891 Over adjustments to deferred tax in respect of prior years (563) (110,270) Subtotal 69,086 (84,379) Total income tax expense 358,501 779,337 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% (2024: 17%) to profit or loss before income tax as a result of the following differences: Group 2025 2024 $ $ Profit before tax 4,265,861 8,692,788 Less: share of profit of associates (1,167,459) (1,222,096) 3,098,402 7,470,692 Income tax expense at the above rate 526,728 1,270,018 Tax effect of non-deductible expenses 155,690 796,974 Tax effect of tax exemptions (21,049) (50,933) Tax effect of different tax rates in other jurisdictions, tax rebates and incentives 45,196 47,062 Over adjustments to the current and deferred tax in respect of prior years (142,412) (125,294) Utilisation of deferred tax assets previously not recognised (303,204) (1,264,703) Withholding taxes 97,552 106,213 Total income tax expense 358,501 779,337 There are no income tax consequences of dividends to owners of the Company. MEGACHEM LIMITED ANNUAL REPORT 2025 136 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2025
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