Annual Report 2024

NOTESTOTHE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2024 92 The United Laboratories International Holdings Limited Annual Report 2024 11. TAX EXPENSE 2024 2023 RMB’000 RMB’000 The tax charge comprises: Current tax Hong Kong Profits tax 8,098 1,547 PRC Enterprise Income Tax (“EIT”) 539,408 499,827 PRC withholding tax on interest income 1,448 5,908 PRC withholding tax on royalty income 36 79 PRC withholding tax on distributed profits of PRC subsidiaries 80,556 42,701 629,546 550,062 Deferred tax charge (Note 30) 1,531 93,241 631,077 643,303 Taxation arising in other jurisdictions is calculated at the rates prevailing in the relevant jurisdictions. Hong Kong Profits Tax is calculated at 16.5% of the estimated assessable profits for both years. PRC EIT is calculated at the applicable rates of tax prevailing in the areas in which the Group operates, based on the existing legislation, interpretations and practices. Pursuant to the PRC EIT law and its detailed implementation rules promulgated on 16 March 2007 and 6 December 2007, respectively, the tax rate for domestic and foreign enterprises is unified at 25% and is effective from 1 January 2008. Besides, with effect from 1 January 2008, if the subsidiaries are qualified as high-technology companies (under the new PRC EIT law), the subsidiaries are entitled to a reduced rate of 15% and such qualification is subject to renewal for every three years. Certain of group entities in the PRC are entitled to the reduced tax rate of 15% for 2024 and 2023.