| INCOME TAX |
10.1INCOME TAX EXPENSE | | | | | | | | | 2023 | | 2024 | | 2025 | | | USD’000 | | USD’000 | | USD’000 | Current tax: | | | | | | | – current year | | 11,926 | | 7,866 | | 15,161 | – (over) under provision of tax in prior years | | (893) | | (390) | | 103 | Deferred tax (Note 10.2) | | (3,183) | | 4,368 | | (2,095) | | | 7,850 | | 11,844 | | 13,169 |
The Company is incorporated as an exempted company and as such is not subject to Cayman Islands taxation. The taxation of the Group is calculated at the rates prevailing in the relevant jurisdictions at 9% to 33% on the estimated assessable profits for the year ended December 31, 2025 (2023 and 2024: 9% to 33%). The income tax expense for the years ended December 31, 2023, 2024 and 2025 can be reconciled to the profit before tax per the consolidated statements of profit or loss and other comprehensive income as follows: | | | | | | | | | 2023 | | 2024 | | 2025 | | | USD’000 | | USD’000 | | USD’000 | Profit before tax | | 33,107 | | 33,243 | | 49,507 | Tax at 17% (Note) | | 5,628 | | 5,651 | | 8,416 | Tax effect of expenses not deductible for tax purposes | | 4,438 | | 4,762 | | 4,911 | Tax effect of income not taxable for tax purposes | | (197) | | (129) | | (196) | Tax effect of tax losses not recognized | | 4,029 | | 2,840 | | 3,274 | Tax effect of deductible temporary differences not recognized and utilization of temporary differences not recognized previously | | (270) | | (847) | | (4,350) | Utilization of tax losses previously not recognized | | (5,376) | | (4,752) | | (1,232) | Tax exemption and rebates | | (899) | | (65) | | (104) | Withholding tax | | 1,906 | | 2,810 | | 2,488 | (Over) Under provision of tax in prior years | | (893) | | (390) | | 103 | Effect of different tax rates of subsidiaries operating in other jurisdictions | | (481) | | 1,561 | | 477 | Others | | (35) | | 403 | | (618) | Income tax expense for the year | | 7,850 | | 11,844 | | 13,169 |
| Note: | 17% represents the domestic tax rate of Singapore, the largest region where the Group’s business was located for the years ended December 31, 2023, 2024 and 2025. |
10.2DEFERRED TAX ASSETS (LIABILITIES) For the purpose of presentation in the consolidated statements of financial position, certain deferred tax assets and liabilities have been offset. The following is the analysis of the deferred tax balances for the financial reporting purpose: | | | | | | | | | As at | | As at | | As at | | | December 31, | | December 31, | | December 31, | | | 2023 | | 2024 | | 2025 | | | USD’000 | | USD’000 | | USD’000 | Deferred tax assets | | 43,787 | | 51,916 | | 57,903 | Deferred tax liabilities | | (43,139) | | (55,621) | | (59,362) | | | 648 | | (3,705) | | (1,459) |
The followings are the major deferred tax assets and liabilities recognized and movements thereon during the years ended December 31, 2023, 2024 and 2025: | | | | | | | | | | | | | | | Accelerated | | Right-of- | | | | | | | | | | | tax | | use | | Lease | | Tax | | | | | | | depreciation | | assets | | liabilities | | losses | | Others | | Total | | | USD’000 | | USD’000 | | USD’000 | | USD’000 | | USD’000 | | USD’000 | At January 1, 2023 | | (2,360) | | (50,978) | | 49,406 | | 1,063 | | 277 | | (2,592) | Credit (charge) to profit or loss (Note 10.1) | | 550 | | 8,396 | | (7,555) | | 1,098 | | 694 | | 3,183 | Exchange adjustments | | 2 | | 155 | | (99) | | (3) | | 2 | | 57 | At December 31, 2023 | | (1,808) | | (42,427) | | 41,752 | | 2,158 | | 973 | | 648 | Credit (charge) to profit or loss (Note 10.1) | | 313 | | (7,706) | | 8,385 | | (783) | | (4,577) | | (4,368) | Exchange adjustments | | (9) | | 2,281 | | (2,020) | | (202) | | (35) | | 15 | At December 31, 2024 | | (1,504) | | (47,852) | | 48,117 | | 1,173 | | (3,639) | | (3,705) | Credit (charge) to profit or loss (Note 10.1) | | 1,292 | | (3,245) | | 3,780 | | 242 | | 26 | | 2,095 | Exchange adjustments | | (362) | | (1,267) | | 1,281 | | 63 | | 436 | | 151 | At December 31, 2025 | | (574) | | (52,364) | | 53,178 | | 1,478 | | (3,177) | | (1,459) |
Deferred tax assets have not been recognized in respect of the following items: | | | | | | | As at | | As at | | | December 31, | | December 31, | | | 2024 | | 2025 | | | USD’000 | | USD’000 | Tax losses (Note i) | | 127,280 | | 114,405 | Other deductible temporary differences (Note ii) | | 81,177 | | 44,162 | | | 208,457 | | 158,567 |
Notes: | i. | Included in unrecognized tax losses are losses of USD46,827,000 that will expire in 2026 to 2035 (2024: USD60,558,000 that will expire in 2026 to 2034) and tax losses of USD67,578,000 (2024: USD66,722,000) may be carried forward indefinitely. |
No deferred tax asset has been recognized in relation to the above tax losses due to the unpredictability of future profit streams of those loss-making subsidiaries and it is not probable that taxable profit will be available against which the tax losses can be utilized. | ii. | As at December 31, 2025, the Group has other deductible temporary differences of USD44,162,000 (2024: USD81,177,000) mainly arising from temporary differences of impairment loss and leasing transactions that may be carried forward indefinitely. No deferred tax asset has been recognized in relation to such deductible temporary difference as it is not probable that taxable profit will be available against which the deductible temporary differences can be utilized. |
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