NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 December 2021 10. INCOME TAX EXPENSE 2021 2020 US$’000 US$’000 Current tax 45,789 32,978 Deferred tax (note 28) 60,375 63,019 106,164 95,997 The Company was incorporated in the Cayman Islands as an exempted company with limited liability under the Cayman Islands Companies Law and is exempted from the payment of Cayman Islands income tax. During the year, Hong Kong profits tax has been provided at the rate of 16.5% (2020: 16.5%) on the assessable profits arising in Hong Kong. During the year, the subsidiaries incorporated in China are subject to China income tax at the rate of 25% (2020: 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: 2021 2020 US$’000 US$’000 Profit before tax 488,840 410,704 Tax at the statutory tax rates 118,501 104,524 Profits attributable to joint ventures and associates (26,597) (16,423) Income not subject to tax (21,058) (11,278) Non-deductible expenses 4,523 4,448 Effect of withholding tax 24,392 9,891 Unrecognised deductible temporary differences 62 95 Adjustment of current tax of previous periods 2,364 1,275 Utilisation of tax losses not recognised in previous periods (382) (27) Tax losses not recognised 4,368 3,659 Previous period tax losses recognised in current period (20) – Others 11 (167) Tax charge 106,164 95,997 During the year, the share of tax attributable to joint ventures and associates of US$26,597,000 (2020: US$16,423,000) is included in “Share of profits and losses of joint ventures and associates” in the consolidated statement of profit or loss and other comprehensive income. R E A C H I N G N E W H E I G H T S 180
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