Page 290 - Bank-Muamalat_Annual-Report-2023

BANK MUAMALAT MALAYSIA BERHAD

NOTES TO THE
FINANCIAL STATEMENTS
31 DECEMBER 2023 (18 JAMADIL AKHIR 1445H)

41. TAXATION
Group Bank
2023 2022 2023 2022
RM’000 RM’000 RM’000 RM’000

Current income tax 71,967 72,963 70,604 70,524
(Over)/Under provision in prior years (1,533) 1,161 (1,470) 1,163
70,434 74,124 69,134 71,687

Deferred tax: (Note 16)
Relating to origination and reversal of temporary
differences 1,749 2,077 2,312 2,077
Relating to increase in Malaysian income tax rate - 6,195 - 6,195
Under/(Over) provision in prior years 1,358 (1,141) 1,335 (1,141)
3,107 7,131 3,647 7,131
73,541 81,255 72,781 78,818

Income tax is calculated based on the chargeable income above on the assessable profit for the financial year at 24%.

As per the Finance Act 2021 gazetted on 31 December 2021, effective for Year of Assessment (“YA”) 2022,
a special one-off tax called “Cukai Makmur” was imposed on companies that generate chargeable income more than
RM100 million as follows:
- Chargeable income for the first RM100 million will be taxed at a rate of 24%; and
- Chargeable income in excess of RM100 million will be taxed at a rate of 33%.
A reconciliation of income tax expense applicable to profit before taxation at the statutory income tax rate to income
tax expense at the effective income tax rate of the Group and of the Bank is as follows:
Group Bank
2023 2022 2023 2022
RM’000 RM’000 RM’000 RM’000

Profit before taxation 295,583 306,725 300,756 300,510

Taxation at Malaysian statutory tax rate 24% 70,940 73,614 72,181 72,122
Additional tax rate of 9% in excess of RM100 million - 15,798 - 15,798
Effect of different tax rates in Labuan - 171 - 171
Income not subject to tax (141) (16,439) (953) (17,268)
Effect on opening deferred tax of increase in
Malaysian income tax rate - 6,194 - 6,194
Deferred tax recognised at different tax rates - (455) - (455)
Expenses not deductible for tax purposes 2,917 2,352 1,690 2,234
(Over)/Under provision of income tax in prior years (1,533) 1,161 (1,472) 1,163
Under/(Over) provision of deferred tax in prior years 1,358 (1,141) 1,335 (1,141)
Income tax expense for the year 73,541 81,255 72,781 78,818

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