Directors' Report - Alibaba

NOTES TO THE FINANCIAL STATEMENTS
For the year ended December 31, 2010
31 DEFERRED TAX ASSETS AND LIABILITIES
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax
liabilities and when the deferred taxes relate to the same tax authority. The amounts shown in the consolidated balance sheet are
determined after appropriate offset.
Alibaba.com Limited Annual Report 2010
132
2009 2010
RMB’000 RMB’000
Deferred tax assets:
– Deferred tax assets to be recovered after more than 12 months 13,534 19,578
– Deferred tax assets to be recovered within 12 months 59,631 81,754
73,165 101,332
Deferred tax liabilities:
– Deferred tax liabilities to be settled after more than 12 months (67,224) (117,223)
– Deferred tax liabilities to be settled within 12 months (2,417) (13,632)
(69,641) (130,855)
Deferred tax assets/(liabilities), net 3,524 (29,523)
The movement of deferred tax assets/(liabilities), net is as follows:
2009 2010
RMB’000 RMB’000
As of January 1 310,025 3,524
Charged to the consolidated statement of comprehensive income (Note 12) (26,256) (26,986)
Reversal of deferred tax assets arising from change in tax filing basis (i) (256,766) –
Deferred tax assets arising from the acquisition of HiChina 12,021 –
Deferred tax liabilities arising from the acquisition of HiChina (35,500) –
Deferred tax liabilities arising from the acquisitions of Vendio and Auctiva – (41,145)
Exchange differences – 943
Settlement of withholding tax of previous year – 34,141
As of December 31 3,524 (29,523)
(i) Pursuant to the new PRC Enterprise Income Tax Law and Guoshuihan [2008] No. 875, taxable income should be computed on an accrual basis for
enterprise income tax puspose. As a result, Alibaba China changed its enterprise income tax filing basis from cash basis to accrual basis in 2009.