Annual Report 2025

215 2025 Annual Report Transport International Holdings Limited 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: 2025 2024 $’000 $’000 Current tax Hong Kong Profits Tax 12,155 19,721 Over-provision in respect of prior years (95) (56) 12,060 19,665 Withholding tax outside Hong Kong 76 177 12,136 19,842 Deferred tax Origination and reversal of temporary differences 83,104 37,178 Actual tax expense 95,240 57,020 The provision for Hong Kong Profits Tax for 2025 is calculated at 16.5% (2024: 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% (2024: 8.25%) and the remaining assessable profits are taxed at 16.5% (2024: 16.5%). (b) Reconciliation between tax expense and accounting profit at the applicable tax rates: 2025 2024 $’000 $’000 Profit before taxation 493,262 244,302 Notional tax on profit before taxation, calculated at the rates applicable to profits in the tax jurisdictions concerned 81,262 40,637 Tax effect of non-deductible expenses 41,222 46,548 Tax effect of non-taxable income (27,931) (31,814) Tax effect of unused tax losses not recognised 769 1,187 Over-provision in respect of prior years (95) (56) Others 13 518 Actual tax expense 95,240 57,020