Annual Report 2021

ANNUAL REPORT 2021 137 12. TAXATION (CONTINUED) The amount of taxation charged to the consolidated statement of profit or loss represents: 2021 2020 HK$’million HK$’million Current taxation Hong Kong Profits Tax 1 4 PRC corporate income tax (Note) 479 841 Overseas profits tax 275 — Withholding income tax 176 146 Deferred taxation Origination and reversal of temporary differences 310 86 1,241 1,077 Note: Included in the amount for the year ended 31 December 2020 was the PRC corporate income tax of HK$431 million levied on the Group for the gain on resumption of land parcels at Shantou. Further details are set out in note 7. The tax on the Group’s profit before taxation differs from the theoretical amount that would arise using the weighted average tax rate applicable to profits of the group entities as follows: 2021 2020 HK$’million HK$’million Profit before taxation (excluding share of profits less losses of associates and joint ventures) 3,372 2,701 Expected tax calculated at the weighted average applicable tax rate 1,034 700 Income not subject to tax (588) (560) Expenses not deductible for tax purposes 293 512 Tax losses and other temporary differences not recognised 65 70 Utilisation of previously unrecognised tax losses (17) (11) Withholding tax on earnings of subsidiaries, associates and joint ventures 454 366 Tax charge 1,241 1,077 The weighted average applicable tax rate was 30.7% (2020: 25.9%).