Income taxes |
17. Income taxes
(a) Income taxes recognized in consolidated statements
of profit or loss:
|
|
For the year ended December 31, 2023 | | |
For the year ended December 31, 2024 | |
|
|
MYR | | |
MYR | | |
USD | |
Current tax |
|
| | | |
| | | |
| | |
Provision for the year |
|
| 1,355,882 | | |
| 2,637,694 | | |
| 590,154 | |
Under provision in prior years |
|
| – | | |
| 225,946 | | |
| 50,553 | |
Deferred tax |
|
| – | | |
| (30,023 | ) | |
| (6,717 | ) |
|
|
| 1,355,882 | | |
| 2,833,617 | | |
| 633,990 | |
Notes:
Under the current tax laws of the Cayman
Islands, the Group is not subject to any income tax in the Cayman Islands.
Under the Income Tax Act of Malaysia,
enterprises incorporated in Malaysia are usually subject to a unified 24% enterprise income tax rate while preferential tax rates, tax
holidays, and tax exemptions may be granted on a case-by-case basis.
For the fiscal year ended December 31,
2024 and 2023, the tax rate is 24% for companies incorporated in Malaysia with paid-in capital of MYR 2.5 million or more.
(b) | Reconciliation between tax expenses and accounting profit at applicable tax rates: |
|
|
For the year ended December 31, 2023 | | |
For the year ended December 31, 2024 | |
|
|
MYR | | |
MYR | | |
USD | |
Profit before income taxes |
|
| 5,110,267 | | |
| 6,345,785 | | |
| 1,419,797 | |
Notional tax on profit before taxation, calculated at the rates applicable to the respective tax jurisdictions |
|
| 1,226,464 | | |
| 1,522,988 | | |
| 340,751 | |
Effect of tax rates in foreign jurisdictions |
|
| 135,602 | | |
| 1,064,667 | | |
| 238,207 | |
Non-deductible expenses |
|
| 8,777 | | |
| 20,016 | | |
| 4,479 | |
Tax effect on capital allowance |
|
| (14,961 | ) | |
| – | | |
| – | |
Under provision of tax in prior years |
|
| – | | |
| 225,946 | | |
| 50,553 | |
Tax expenses for the year |
|
| 1,355,882 | | |
| 2,833,617 | | |
| 633,990 | |
(c) |
Deferred tax recognized in the consolidated statement of financial position |
The significant components of deferred taxes
recognized in the consolidated statement of financial position and the movements during the year presented are as follows:
| |
As of | |
| |
December 31, 2024 | |
| |
MYR | | |
USD | |
Deferred tax assets: | |
| | | |
| | |
- Allowance for credit losses | |
| 178,526 | | |
| 39,943 | |
- Lease liability | |
| 598,394 | | |
| 133,884 | |
Total deferred tax assets | |
| 776,920 | | |
| 173,827 | |
Net off against deferred tax liabilities | |
| (746,897 | ) | |
| (167,110 | ) |
Net deferred tax assets | |
| 30,023 | | |
| 6,717 | |
| |
| | | |
| | |
Deferred tax liabilities: | |
| | | |
| | |
- Right-of-use asset | |
| (546,530 | ) | |
| (122,280 | ) |
- Depreciation and amortization | |
| (200,367 | ) | |
| (44,830 | ) |
Total deferred tax liabilities | |
| (746,897 | ) | |
| (167,110 | ) |
Net off against deferred tax assets | |
| 746,897 | | |
| 167,110 | |
Net deferred tax liabilities | |
| – | | |
| – | |
As of December 31, 2023, the amounts
of unrecognized deferred tax assets and deferred tax liabilities were immaterial.
|