Annual Report 2020

China Merchants China Direct Investments Limited Annual Report 2020 123 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2020 11. EMPLOYEES’ EMOLUMENTS The five (2019: four) highest paid individuals in the Group were all Directors of the Company and details of their emoluments are included in note 10 above. 12. TAXATION The tax charge for the year comprises: 2020 2019 US$ US$ The Company and its subsidiaries Current tax: PRC Enterprise Income Tax (302,205) (173,958) Withholding tax for distributed earnings (2,032,086) (985,578) Deferred taxation (note 21) Current year (29,432,671) (33,386,827) Total (31,766,962) (34,546,363) No provision for taxation in Hong Kong has been made as the Company and its subsidiaries do not have assessable profits for both years. PRC Enterprise Income Tax in the PRC is calculated at the rates prevailing in the relevant regions. Under the Law of the PRC on Enterprise Income Tax, withholding tax is imposed on dividends declared in respect of profits earned by PRC subsidiaries from 1 January 2008 onwards. Deferred taxation has been provided for in the consolidated financial statements in respect of temporary differences attributable to retained profits of the PRC subsidiaries.