| Schedule of reconciliation of income tax expense |
| | | | | | | | | 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. |
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| Schedule of analysis of deferred tax balances |
| | | | | | | | | 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) |
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| Schedule of deferred tax assets and liabilities and their movements |
| | | | | | | | | | | | | | | 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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