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SEE HUP SENG LIMITED
Annual Report 2012
62
Notes to the Financial Statements
31 DECEMBER 2012
6 Income Tax (Continued)
Income tax expense on the results for the financial year varies from the amount of income tax determined by
applying the Singapore standard rate of income tax to profit before income tax due to the following:
Group
2012 2011
S$’000 S$’000
Profit before income tax 6,723 9,855
Income tax expense at statutory rate of 17% 1,143 1,675
Non-deductible expenses 779 467
Investment allowance – (25)
Non-taxable items (96) (209)
Singapore statutory tax exemption (132) (76)
Deferred tax assets not recognised – 95
Effect of different tax rate of subsidiaries operating in other jurisdictions 26 34
Effect of previously unrecognised deferred tax assets (240) (186)
(Over)/Under provision of current income tax in prior year (2) 77
1,478 1,852
The tax rate used for the years 2012 and 2011 reconciliations above is the corporate tax rate of 17% payable
by corporate entities in Singapore on taxable profits under tax law in that jurisdiction.
The Group has no unutilised tax losses and unabsorbed capital allowances as at 31 December 2012 (2011:
S$558,000 and Nil respectively) respectively, which can be carried forward and used to offset against future
taxable income.