Annual Report 2023

143 ANNUAL REPORT 2023 12. TAXATION (CONTINUED) The amount of taxation charged to the consolidated statement of profit or loss represents: 2023 2022 HK$’million HK$’million Current taxation Hong Kong Profits Tax 4 8 PRC corporate income tax 383 450 PRC capital gain tax 143 — Overseas profits tax 307 158 Withholding income tax 116 174 Deferred taxation Origination and reversal of temporary differences 221 256 1,174 1,046 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: 2023 2022 HK$’million HK$’million Profit before taxation (excluding share of profits less losses of associates and joint ventures) 2,913 1,963 Expected tax calculated at the weighted average applicable tax rate 950 575 Income not subject to tax (532) (462) Expenses not deductible for tax purposes 230 498 Tax losses and other temporary differences not recognised 38 61 Utilisation of previously unrecognised tax losses (15) (88) Withholding tax on earnings of subsidiaries, associates and joint ventures 503 462 Tax charge 1,174 1,046 The weighted average applicable tax rate was 32.6% (2022: 29.3%).