ESR Group Limited Annual Report 2022 Notes to the Consolidated Financial Statements 31 December 2022 171 10. INCOME TAX EXPENSE (continued) During the year, the subsidiaries incorporated in China are subject to China income tax at the rate of 25% (2021: 25%). Taxes on estimated assessable profits elsewhere were calculated at the rates of taxation prevailing in the respective jurisdictions in which the Group operates. A reconciliation of the tax expense applicable to profit before tax using the applicable rate for the jurisdictions in which the Company and the majority of its subsidiaries are domiciled to the tax expense at the effective tax rates is as follows: 2022 2021 US$’000 US$’000 Profit before tax 815,125 488,840 Tax at the statutory tax rates 177,391 118,501 Profits attributable to joint ventures and associates (28,731) (26,597) Income not subject to tax (62,194) (21,058) Non-deductible expenses 12,080 4,523 Effect of withholding tax 75,477 24,392 Unrecognised deductible temporary differences 5,066 62 Adjustment of current tax of previous periods (3,302) 2,364 Utilisation of tax losses not recognised in previous periods (37) (382) Tax losses not recognised 7,742 4,368 Previous period tax losses recognised in current period (426) (20) Others 950 11 Tax charge 184,016 106,164 During the year, the share of tax attributable to joint ventures and associates of US$28,731,000 (2021: US$26,597,000) is included in “Share of profits and losses of joint ventures and associates, net” in the consolidated statement of profit or loss and other comprehensive income. 11. DIVIDENDS On 25 August 2022, the board of directors declared an interim dividend of HK$12.5 cents (2021: nil) per ordinary share for the financial year ending 31 December 2022, amounting to a total of US$70,777,000 (2021: nil). On 22 March 2023, the board of directors recommended a final dividend of HK$12.5 cents (2021: nil) per ordinary share for the financial year ended 31 December 2022, amounting to approximately US$70,200,000 (2021: nil). Interim dividend of US$70,777,000 (2021: nil) has been paid by the Company during the financial year ended 31 December 2022. STRATEGIC REPORT FINANCIAL STATEMENT CORPORATE GOVERNANCE
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