Annual Report 2019

181 ANNUAL REPORT 2019 13. TAXATION (CONTINUED) The tax on the Group’s profit before taxation differs from the theoretical amount that would arise using the weighted average tax rate applicable to profits of the group entities as follows: 2019 2018 HK$’million HK$’million Profit before taxation (excluding share of profits less losses of associates and joint ventures) 7,461 4,424 Expected tax calculated at the weighted average applicable tax rate 1,927 1,283 Income not subject to tax (433) (770) Expenses not deductible for tax purposes 279 370 Tax losses and other temporary differences not recognised 109 99 Utilisation of previously unrecognised tax losses (15) (55) Withholding tax on earnings of subsidiaries, associates and joint ventures 651 368 Tax charge 2,518 1,295 The weighted average applicable tax rate was 25.8% (2018: 29.0%). The amount of taxation charged to other comprehensive income represents: 2019 2018 HK$’million HK$’million Deferred taxation Arising on income and expense recognised in other comprehensive income: Revaluation of equity investments at FVTOCI — 38