9. TAX EXPENSE
Tax expense in the consolidated statement of income represents:
|
|
|
Years ended December 31, |
|
||||
|
|
|
2015 |
|
2016 |
|
2017 |
|
|
|
|
RMB |
|
RMB |
|
RMB |
|
|
|
|
|
|
|
|
|
|
|
Current tax |
|
|
|
|
|
|
|
|
- Provision for the year |
|
13,677 |
|
21,313 |
|
26,668 |
|
|
- Adjustment of prior years |
|
279 |
|
228 |
|
(72 |
) |
|
Deferred taxation (Note 22) |
|
(1,343 |
) |
(834 |
) |
(10,317 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
12,613 |
|
20,707 |
|
16,279 |
|
|
|
|
|
|
|
|
|
|
Reconciliation between actual income tax expense and the expected income tax expense at applicable statutory tax rates is as follows:
|
|
|
Years ended December 31, |
|
||||
|
|
|
2015 |
|
2016 |
|
2017 |
|
|
|
|
RMB |
|
RMB |
|
RMB |
|
|
|
|
|
|
|
|
|
|
|
Earnings before income tax |
|
56,411 |
|
80,151 |
|
86,697 |
|
|
Expected PRC income tax expense at a statutory tax rate of 25% |
|
14,103 |
|
20,038 |
|
21,674 |
|
|
Tax effect of preferential tax rate (Note i) |
|
(1,033 |
) |
83 |
|
(793 |
) |
|
Effect of income taxes at foreign operations (Note ii) |
|
391 |
|
299 |
|
(1,394 |
) |
|
Tax effect of non-deductible expenses |
|
788 |
|
1,529 |
|
1,905 |
|
|
Tax effect of non-taxable income |
|
(2,583 |
) |
(2,786 |
) |
(5,939 |
) |
|
Tax effect of utilization of previously unrecognized tax losses and temporary differences |
|
(235 |
) |
(453 |
) |
(613 |
) |
|
Tax effect of tax losses not recognized |
|
828 |
|
958 |
|
1,485 |
|
|
Write-down of deferred tax assets |
|
75 |
|
811 |
|
26 |
|
|
Adjustment of prior years |
|
279 |
|
228 |
|
(72 |
) |
|
|
|
|
|
|
|
|
|
|
Actual income tax expense |
|
12,613 |
|
20,707 |
|
16,279 |
|
|
|
|
|
|
|
|
|
|
Note:
(i) The provision for PRC current income tax is based on a statutory income tax rate of 25% of the assessable income of the Group as determined in accordance with the relevant income tax rules and regulations of the PRC, except for certain entities of the Group in western regions in the PRC are taxed at preferential income tax rate of 15% through the year 2020.
(ii) It is mainly due to the foreign operation in the Republic of Angola (“Angola”) calculated the assessable income in accordance with the relevant income tax rules and regulations of Angola, and taxed at 50% of the assessable income as determined.