Annual Report 2019

180 CHINA MERCHANTS PORT HOLDINGS COMPANY LIMITED Notes to the Consolidated Financial Statements For the year ended 31 December 2019 13. TAXATION Hong Kong Profits Tax has been provided for at the rate of 16.5% (2018: 16.5%) on the estimated assessable profit for the year. The Group’s operations in Mainland China are subject to corporate income tax law of the PRC (“PRC corporate income tax”). The standard PRC corporate income tax rate is 25%. Certain of the Group’s subsidiaries enjoy the preferential tax rate of 15% upon the fulfilment of the criteria of the PRC tax laws. Further, 10% withholding income tax is generally imposed on dividends relating to any profits earned commencing from 2008 to foreign investors, while for some PRC entities held by companies incorporated in certain places, including Hong Kong and Singapore, preferential tax rate of 5% will be applied according to the PRC tax regulations if such companies are the beneficial owner of over 25% of these PRC entities. Taxation outside of Hong Kong and Mainland China has been calculated on the estimated assessable profit for the year at the rates of taxation prevailing in the countries in which the Group operates. Certain of the Group’s overseas subsidiaries are exempted from the corporate income tax in the relevant countries. The amount of taxation charged to the consolidated statement of profit or loss represents: 2019 2018 HK$’million HK$’million Current taxation Hong Kong Profits Tax 5 3 PRC corporate income tax (Note (a)) 2,021 906 Overseas profits tax 51 57 Withholding income tax 164 169 Deferred taxation Origination and reversal of temporary differences (Note (b)) 277 160 2,518 1,295 Notes: (a) Included in the amount for the year ended 31 December 2019 is the PRC corporate income tax of HK$1,409 million levied on the Group for the gain on resumption of land parcels at Qianhai. Further details are set out in notes 8 and 43(a)(ix). Included in the amount for the year ended 31 December 2018 was the PRC corporate income tax of HK$630 million levies on the Group for the gain on disposal of subsidiaries during the prior financial year. (b) Included in the amount for the year ended 31 December 2019 is the net deferred tax arising from the gain on resumption of land parcels at Qianhai amounting to HK$130 million.