Major components of tax expense (income) [abstract]

The taxation on the Group’s profit before income tax differs from the theoretical amount that would arise using the tax rate of 25% for the years ended December 31, 2023, 2024 and 2025, being the tax rate of the major subsidiaries of the Group before enjoying preferential tax treatments, as follows:


	Year ended December 31,
	2023			2024			2025
	RMB’million			RMB’million			RMB’million
Profit before income tax		6,045			8,712			13,277
Tax calculated at a tax rate of 25%		1,511			2,178			3,319
Effects of different tax rates applicable to different subsidiaries of the Group		(34	)		(84	)		(227	)
Effects of preferential tax rate on assessable profit of certain subsidiaries		(888	)		(932	)		(1,234	)
Expense not deductible for tax purposes		187			39			93
Income not subject to tax		(1	)		(61	)		(486	)
Unrecognized deferred income tax assets		32			69			43
Utilization of previously unrecognized tax assets		(45	)		(52	)		(55	)
Withholding tax on the earnings remitted or expected to be remitted by subsidiaries		75			440			441
Others		(12	)		6			30
		825			1,603			1,924

Summary of Deferred Tax Assets and Deferred Tax Liabilities

(b)

Deferred income tax


	As at December 31,
	2024			2025
	RMB’million			RMB’million
The deferred tax assets comprise temporary differences attributable to:
Prepayment and other investments		158			195
Deferred revenue		29			43
Accruals		185			199
Lease liabilities		61			65
Others		50			55
Total deferred tax assets		483			557
Set-off of deferred tax assets pursuant to set-off provisions		(61	)		(59	)
Net deferred tax assets		422			498
The deferred tax liabilities comprise temporary differences attributable to:
Intangible assets acquired in business combinations		173			386
Right-of-use assets		58			59
Withholding tax on earnings expected to be remitted by subsidiaries		-			86
Others		28			32
Total deferred tax liabilities		259			563
Set-off of deferred tax liabilities pursuant to set-off provisions		(61	)		(59	)
Net deferred tax liabilities		198			504

Summary of Movements of Deferred Income Tax Assets

The movements of deferred income tax assets were as follows:


	Prepayment and other investments		Deferred revenue		Accruals		Lease liabilities			Others		Total
	RMB’million		RMB’million		RMB’million		RMB’million			RMB’million		RMB’million
At January 1, 2024		144		17		177		76			13		427
Credited/(charged) to income statement		14		12		8		(15	)		37		56
At December 31, 2024		158		29		185		61			50		483
Credited to income statement		37		14		14		4			5		74
At December 31, 2025		195		43		199		65			55		557