Annual Report 2020

135 Notes to the Financial Statements Miramar Hotel and Investment Company, Limited Annual Report 2020 4 Taxation in the consolidated statement of profit or loss (a) Taxation in the consolidated statement of profit or loss represents: 2020 2019 HK$’000 HK$’000 Current tax – Hong Kong Profits Tax Provision for the year 85,229 132,046 Under/(over)-provision in respect of prior years 182 (359) 85,411 131,687 Current tax – Overseas Taxation Provision for the year 6,572 6,410 91,983 138,097 Deferred tax Change in fair value of investment properties 45 (55) Origination and reversal of temporary differences 7,338 6,003 7,383 5,948 99,366 144,045 Provision for Hong Kong Profits Tax is calculated at 16.5% (2019: 16.5%) on the estimated assessable profits for the year, except for one subsidiary of the Group which is a qualifying corporation under the two-tiered Profits Tax rate regime. For this subsidiary, the first HK$2 million of assessable profits are taxed at 8.25% and the remaining assessable profits are taxed at 16.5%. The provision for Hong Kong Profits Tax for this subsidiary was calculated at the same basis in 2019. Overseas taxation is calculated at rates of tax applicable in the jurisdictions in which the Group is assessed for tax. Share of associates’ taxation for the year ended 31 December 2020 of HK$23,000 (2019: HK$24,000) is included in the share of profits less losses of associates.