| 12 | INCOME TAX EXPENSE |
| 2017 | 2016 | 2015 | ||||||||||
| RMB | RMB | RMB | ||||||||||
|
Current taxes |
23,835 | 19,762 | 18,998 | |||||||||
|
Deferred taxes (Note 30) |
(7,539 | ) | (3,994 | ) | (3,272 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| 16,296 | 15,768 | 15,726 | ||||||||||
|
|
|
|
|
|
|
|||||||
In accordance with the relevant PRC income tax rules and regulations, the PRC corporate income tax rate applicable to the Group is principally 25%. Operations of the Group in western regions in China qualified for certain tax incentives in the form of a preferential income tax rate of 15% through the year 2020.
The tax on the Group’s profit before taxation differs from the theoretical amount that would arise using the corporate income tax rate in the PRC applicable to the Group is as follows:
| 2017 | 2016 | 2015 | ||||||||||
| RMB | RMB | RMB | ||||||||||
|
Profit before income tax expense |
53,089 | 45,140 | 57,815 | |||||||||
|
|
|
|
|
|
|
|||||||
|
Tax calculated at a tax rate of 25% |
13,272 | 11,285 | 14,454 | |||||||||
|
Tax return true-up |
1,275 | 1,887 | 2,008 | |||||||||
|
Effect of income taxes from international operations in excess of taxes at the PRC statutory tax rate |
693 | 1,797 | 910 | |||||||||
|
Effect of preferential tax rate |
(5,058 | ) | (2,418 | ) | (5,436 | ) | ||||||
|
Tax effect of income not subject to tax |
(3,401 | ) | (4,935 | ) | (2,875 | ) | ||||||
|
Tax effect of expenses not deductible for tax purposes |
9,515 | 8,152 | 6,665 | |||||||||
|
|
|
|
|
|
|
|||||||
|
Income tax expense |
16,296 | 15,768 | 15,726 | |||||||||
|
|
|
|
|
|
|
|||||||