Annual Report 2012

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
for the year ended 31 December 2012
42 NON-OPERATING INCOME
The Group The Company
2012 2011 2012 2011
RMB millions RMB millions RMB millions RMB millions
Gain on disposal of non-current assets 931 1,412 889 1,361
Government grants 2,814 1,400 2,414 1,243
Others 828 599 642 425
Total 4,573 3,411 3,945 3,029
43 NON-OPERATING EXPENSES
The Group The Company
2012 2011 2012 2011
RMB millions RMB millions RMB millions RMB millions
Loss on disposal of non-current assets 798 658 679 491
Fines, penalties and compensation 181 236 176 231
Donations 231 90 226 86
Others 1,182 755 1,117 738
Total 2,392 1,739 2,198 1,546
44 INCOME TAX EXPENSE
The Group The Company
2012 2011 2012 2011
RMB millions RMB millions RMB millions RMB millions
Provision for income tax for the year 23,950 22,731 13,049 12,147
Deferred taxation (826) 2,676 1,313 983
Under-provision for income tax in respect of preceding year 572 367 718 285
Total 23,696 25,774 15,080 13,415
Reconciliation between actual income tax expense and accounting profit at applicable tax rates is as follows:
The Group The Company
2012 2011 2012 2011
RMB millions RMB millions RMB millions RMB millions
Profit before taxation 90,107 102,638 78,480 78,936
Expected income tax expense at a tax rate of 25% 22,527 25,660 19,620 19,734
Tax effect of non-deductible expenses 536 542 400 447
Tax effect of non-taxable income (679) (1,542) (3,813) (5,272)
Tax effect of preferential tax rate (Note) (2,085) (1,817) (1,857) (1,779)
Effect of income taxes from foreign operations in excess of taxes
at the PRC statutory tax rate (Note) 1,911 1,587 — —
Tax effect of utilisation of previously unrecognised tax losses
and temporary differences (241) (394) — —
Tax effect of unrecognised temporary differences 12 104 12 —
Tax effect of tax losses not recognised 963 734 — —
Write-down of deferred tax assets 180 533 — —
Adjustment for under-provision for income tax
in respect of preceding year 572 367 718 285
Actual income tax expense 23,696 25,774 15,080 13,415
Note: The provision for PRC current income tax is based on a statutory income tax rate of 25% of the assessable income of the Group as determined in accordance
with the relevant income tax rules and regulations of the PRC, except for certain entities of the Group in the PRC that are taxed at preferential rates, and the
foreign operation in the Republic of Angola (“Angola”) that is taxed at 50% of the assessable income as determined in accordance with the relevant income tax
rules and regulations of Angola.
115
CHINA PETROLEUM & CHEMICAL CORPORATION Annual Report 2012
Financial Statements (PRC)