Interim Report 2023

44 CHINA MERCHANTS PORT HOLDINGS COMPANY LIMITED Notes to the Condensed Consolidated Interim Financial Information For the six months ended 30 June 2023 9. TAXATION Hong Kong Profits Tax has been provided for at the rate of 16.5% (2022: 16.5%) on the estimated assessable profit for the period. The Group’s operations in Mainland China are subject to corporate income tax law of the People’s Republic of China (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 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 period 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 condensed consolidated statement of profit or loss represents: Six months ended 30 June 2023 2022 HK$’million HK$’million Current taxation Hong Kong Profits Tax 2 5 PRC corporate income tax 241 349 Overseas profits tax 90 55 Withholding income tax 97 114 Deferred taxation Origination and reversal of temporary differences 86 103 516 626