annual report - Tenaga Nasional Berhad

Notes To The Financial Statements10 TAXATION AND ZAKAT (CONT’D.)groupCompany2008 2007 2008 2007RM’million RM’million RM’million RM’millionThe analysis of the tax expense is as follows:Current tax:Current year 393.7 806.2 506.1 799.5(Over)/under accrual in prior years (43.9) 8.9 (52.2) 10.6349.8 815.1 453.9 810.1Deferred tax:Origination/(reversal) of temporary differences 63.0 (150.2) (25.5) (233.6)Real Property Gains Tax 4.0 1.3 4.0 1.3416.8 666.2 432.4 577.8The explanation of the relationship between tax expense and profit before taxation is as follows:groupCompany2008 2007 2008 2007RM’million RM’million RM’million RM’millionProfit before taxation and zakat 3,025.2 4,765.9 3,104.0 4,124.4[ Tenaga Nasional Berhad ] [ Annual Report 2008 ]204Tax calculated at the Malaysiancorporate income tax rateof 26% (2007: 27%) 786.6 1,286.8 807.1 1,113.6Tax effects of:– change in corporate income tax rate (232.8) (456.3) (217.1) (450.3)– share of results of associates 2.9 4.9 0 0– income not subject to tax (175.5) (286.8) (141.1) (186.3)– expenses not deductible for tax purpose 45.1 116.3 37.6 94.6– current year’s tax loss not recognised 10.4 4.3 0 0– expenses qualifying for double deduction (6.6) (6.0) (5.9) (5.7)(Over)/under provision of current tax in prior years (43.9) 8.9 (52.2) 10.6Benefits from previously unrecognised taxlosses (4.6) 0 0 0Current year unrecognised temporary differences 31.2 (7.2) 0 0Real Property Gains Tax 4.0 1.3 4.0 1.3Zakat 8.0 32.1 8.0 32.1Tax and zakat charge 424.8 698.3 440.4 609.9Average effective tax rate (%) 14.0 14.7 14.2 14.8The Malaysian corporate income tax rate for the Year of Assessment 2009 will be 25%.