Annual Report 2024

219 2024 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: 2024 2023 $’000 $’000 Current tax Hong Kong Profits Tax 19,721 20,521 (Over)/under-provision in respect of prior years (56) 4,703 19,665 25,224 Withholding tax outside Hong Kong 177 283 19,842 25,507 Deferred tax Origination and reversal of temporary differences 37,178 3,946 Actual tax expense 57,020 29,453 The provision for Hong Kong Profits Tax for 2024 is calculated at 16.5% (2023: 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% (2023: 8.25%) and the remaining assessable profits are taxed at 16.5% (2023: 16.5%). (b) Reconciliation between tax expense and accounting profit at the applicable tax rates: 2024 2023 $’000 $’000 Profit before taxation 244,302 431,116 Notional tax on profit before taxation, calculated at the rates applicable to profits in the tax jurisdictions concerned 40,637 71,168 Tax effect of non-deductible expenses 46,548 48,641 Tax effect of non-taxable income (31,814) (91,987) Tax effect of unused tax losses not recognised 1,187 1,186 Tax effect of temporary differences previously not recognised – (4,249) (Over)/under-provision in respect of prior years (56) 4,703 Others 518 (9) Actual tax expense 57,020 29,453