Annual Report 2012

Notes to the financial statements(Expressed in millions of RMB, unless otherwise stated)16 Income tax expense(1) Income tax expense2012 2011Current tax 61,802 55,325– Mainland China 60,939 54,812– Hong Kong 614 401– Other countries and regions 249 112Adjustments for prior years 606 (2,277)Deferred tax (4,571) (3,380)Total 57,837 49,668The provisions of income taxes for Mainland China and Hong Kong are calculated at 25% and 16.5% of the estimated taxableincome from Mainland China and Hong Kong operations for the year respectively. Taxation for other overseas operations is chargedat the appropriate current rates of taxation ruling in the relevant tax jurisdictions.(2) Reconciliation between income tax expense and accounting profit2012 2011Profit before tax 251,439 219,107Income tax calculated at statutory tax rate 62,860 54,777Non-deductible expenses– Staff costs 1,278 586– Others 838 6782,116 1,264Non-taxable income– Interest income from PRC government bonds (7,554) (6,606)– Others (191) (260)(7,745) (6,866)Total 57,231 49,175Adjustments on income tax for prior years which affect profit or loss 606 493Income tax expense 57,837 49,66817 Earnings per shareBasic earnings per share for the year ended 31 December 2012 and 2011 have been computed by dividing the net profit attributable toequity shareholders of the Bank by the weighted average number of ordinary shares outstanding during the years. There was no differencebetween basic and diluted earnings per share as there were no potentially dilutive shares outstanding during the year ended 31 December2012 and 2011.2012 2011Net profit attributable to shareholders of the Bank 193,179 169,258Weighted average number of shares (in million shares) 250,011 250,011Basic and diluted earnings per share attributable to shareholders of the Bank (in RMB Yuan) 0.77 0.68122 China Construction Bank Corporation annual report 2012