Annual Report 2023

224 2023 Annual Report Transport International Holdings Limited NOTES TO THE FINANCIAL STATEMENTS (Expressed in Hong Kong dollars unless otherwise indicated) 6 Income tax in the consolidated statement of profit or loss (a) Taxation in the consolidated statement of profit or loss represents: 2023 2022 $’000 $’000 (restated) Current tax – Hong Kong Profits Tax Provision for the year 20,521 19,563 Under/(over)-provision in respect of prior years 4,703 (690) 25,224 18,873 PRC withholding tax 283 978 25,507 19,851 Deferred tax Origination and reversal of temporary differences 3,946 (117,901) Actual tax expense/(credit) 29,453 (98,050) The provision for Hong Kong Profits Tax for 2023 is calculated at 16.5% (2022: 16.5%) of the estimated assessable profits for the year, except for a subsidiary of the Group which is a qualifying corporation under the two-tier 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%. (b) Reconciliation between tax expense/(credit) and accounting profit at the applicable tax rates: 2023 2022 $’000 $’000 (restated) Profit before taxation 431,116 450,997 Notional tax on profit before taxation, calculated at the rates applicable to profits in the tax jurisdictions concerned 71,168 74,823 Tax effect of non-deductible expenses 48,641 18,715 Tax effect of non-taxable income (91,987) (192,085) Tax effect of unused tax losses not recognised 1,186 1,135 Tax effect of temporary differences previously not recognised (4,249) – Under/(over)-provision in respect of prior years 4,703 (690) Others (9) 54 Actual tax expense/(credit) 29,453 (98,050)