2018 UEM Edgenta Annual Report

10. INCOME TAX EXPENSE/(BENEFIT) (CONT’D.) Reconciliation between tax expense and accounting profits A reconciliation of income tax expense and the product of accounting profit multiplied by the applicable corporate tax rate for the years ended 31 December 2018 and 2017 are as follows: 2018 2017 RM’000 RM’000 Group Profit before tax: - continuing operations 198,471 172,922 - discontinued operation (Note 17(e)) – 68,425 198,471 241,347 Less: Zakat (2,850) (1,636) 195,621 239,711 Taxation at Malaysian statutory tax rate of 24% (2017: 24%) 46,949 57,531 Tax effect on share of profit of joint ventures – (713) Tax effect on share of profit of associates (3,965) (4,717) Income not subject to tax (5,028) (6,745) Exempt income (1,546) – Foreign income not subject to tax (1,595) (276) Non-deductible expenses 15,007 34,979 Different tax rates in other countries (2,393) (568) Effect of exempt income under investment tax allowance – (108) Utilisation of previously unrecognised tax losses and unabsorbed capital allowances (10) – Deferred tax assets not recognised during the year - Malaysian subsidiaries 840 3,034 - Foreign operations – 4,958 Utilisation of group tax relief (1,700) (3,500) Under/(over) provision of deferred tax in prior years 4,109 (27) Over provision of income tax expense in prior years (7,408) (3,988) Income tax expense recognised in income statements 43,260 79,860 The above reconciliation is prepared by aggregating separate reconciliations for each national jurisdiction. Financial Review Stakeholder Information AGM Information 191 Governance Review of Sustainability Activities