Annual Report 2022

NOTESTOTHE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2022 100 The United Laboratories International Holdings Limited Annual Report 2022 11. TAX EXPENSE (Continued) The tax expense for the year can be reconciled to the profit before taxation per the consolidated statement of profit or loss and other comprehensive income as follows: 2022 2021 RMB’000 RMB’000 Profit before taxation 2,006,766 1,202,647 Tax at the PRC EIT rate of 25% (2021: 25%) 501,692 300,662 Tax effect of share of results of an associate 47 – Tax effect of expenses not deductible for tax purpose 104,877 31,889 Tax effect of income not taxable for tax purpose (34,494) (13,341) Tax effect of super deduction of research and development expenses (Note) (51,098) (81,312) Tax effect of tax losses not recognised 17,652 13,050 Utilisation of tax losses previously not recognised (3,103) (81,655) Tax effect of deductible temporary differences not recognised (3,320) 74,641 PRC withholding tax on distributable profits of the PRC subsidiaries 83,050 61,684 PRC withholding tax on interest income 7,316 4,536 Effect of tax concessionary rates granted to the PRC subsidiaries (196,285) (97,011) Others (591) (81) Tax expense for the year 425,743 213,062 Note: Pursuant to Caishui [2021] circular No. 13, the Group is able to enjoy super deduction of 200% on qualifying research and development expenditures for the years ended 31 December 2022 and 2021.