ST Engineering Annual Report 2020

NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2020 (CURRENCY – SINGAPORE DOLLARS UNLESS OTHERWISE STATED) B6 Taxation (i) Tax expenses Group 2020 2019 $’000 $’000 Current income tax Current year 81,354 193,893 Overprovision in respect of prior years (24,061) (9,211) 57,293 184,682 Deferred income tax Current year (59,825) (69,565) Under/(over)provision in respect of prior years 14,501 (12,320) Effect of change in tax rates (3,190) (227) (48,514) (82,112) 8,779 102,570 A reconciliation between tax expense and the product of accounting profit multiplied by the applicable corporate tax rate for the year ended 31 December is as follows: Group 2020 2019 $’000 $’000 Profit before taxation 534,402 695,244 Taxation at statutory tax rate of 17% (2019: 17%) 90,848 118,191 Adjustments: Income not subject to tax (48,302) (3,786) Expenses not deductible for tax purposes 11,459 17,571 Different tax rates of other countries (239) 7,416 Overprovision in respect of prior years (9,560) (21,531) Effect of change in tax rates (3,190) (227) Effect of results of associates and joint ventures presented net of tax (5,166) (6,627) Tax incentives (776) (1,346) Deferred tax assets not recognised 6,753 7,692 Deferred tax assets previously not recognised now utilised (33,334) (11,792) Others 286 (2,991) 8,779 102,570 17 1 ANNUAL REPORT 2 0 2 0 / CORPORATE OVERVI EW PERFORMANCE REVI EW SUSTAINABI L ITY CORPORATE GOVERNANCE F INANCIAL REPORT