Annual Report 2021

190 Transport International Holdings Limited 2021 Annual Report 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: 2021 2020 $’000 $’000 Current tax – Hong Kong Profits Tax Provision for the year 13,804 17,139 Over-provision in respect of prior years (148) (24,244) 13,656 (7,105) PRC withholding tax 805 1,262 14,461 (5,843) Deferred tax Origination and reversal of temporary differences 12,588 (176,115) 27,049 (181,958) The provision for Hong Kong Profits Tax for 2021 is calculated at 16.5% (2020: 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% and the remaining assessable profits are taxed at 16.5%. (b) Reconciliation between tax expense/(credit) and accounting profit at the applicable tax rates: 2021 2020 $’000 $’000 Profit before taxation 272,093 1,722,156 Notional tax on profit before taxation, calculated at the rates applicable to profits in the tax jurisdictions concerned 46,120 284,837 Tax effect of non-deductible expenses 4,600 4,946 Tax effect of non-taxable income (24,589) (434,228) Tax effect of unused tax losses not recognised 1,119 841 Tax effect of temporary differences previously not recognised – (12,780) Over-provision in respect of prior years (148) (24,244) Others (53) (1,330) Actual tax expense/(credit) 27,049 (181,958)