SEC Form 17-A: Annual Report - the solid group inc website

- 60 -
On July 1, 1998, the PEZA approved Starworld’s registration as an Ecozone developer
and operator of the CPIP – Special Economic Zone located at Bo. Parian, Calamba
City. Under the terms of the registration and subject to certain requirements, Starworld
shall be exempt from all national and local taxes and instead will be subject to the 5%
preferential tax rate on gross income after allowable deductions.
(c)
Fil-Dragon Taxation
Pursuant to the relevant law and regulations in the PRC, the Fil-Dragon is subject to
PRC corporate income tax of 25% on the estimated assessable profit for the year. No
provision has been provided in the consolidated financial statements as the
Fil-Dragon did not generate any assessable profits in 2012, 2011 and 2010.
23.2 Current and Deferred Taxes
The components of tax expense as reported in the consolidated statements of income and
consolidated statements of comprehensive income are as follows:
2012 2011 2010
Consolidated statements of income
Current tax expense:
Regular corporate
income tax (RCIT) at 30% P 190,483,882 P 105,566,741 P 91,903,929
Final taxes at 20% and 7.5% 17,657,651 9,686,979 8,917,838
Preferential taxes at 5% 2,035,898 1,165,853 2,718,628
Minimum corporate
income tax (MCIT) at 2% 222,424 784,751 4,269,350
210,399,855 117,204,324 107,809,745
Deferred tax expense relating to
origination and reversal of
temporary differences 65,764,939 22,508,829 15,457,073
P 276,164,794 P 139,713,153 P 123,266,818
Consolidated statements of comprehensive income –
Deferred tax income on changes in
fair value of AFS financial assets
(see Note 24.3) (P 300,000) (P 1,458,000) ( P 1,110,000 )