China Communications Services Corporation Limited Annual Report 2015
124
NOTES TO THE
CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2015
10. INCOME TAX
(continued)
(b) Reconciliation between tax expense and accounting profit at applicable tax rates:
2015
2014
RMB’000
RMB’000
Profit before tax
2,824,963
2,630,886
Expected income tax expense at a statutory tax rate of 25% (2014: 25%) (note (i))
706,241
657,722
Differential tax rates on subsidiaries’ income (note (i))
(220,867)
(195,847)
Non-deductible expenses (note (ii))
135,387
93,164
Non-taxable income
(53,723)
(46,940)
Tax losses not recognised
59,058
101,789
Utilisation of previously unrecognised tax losses
(8,354)
(6,604)
Over provision in respect of prior years
(29,094)
(29,516)
Effect of tax exemptions
(1,362)
(8,132)
Others (note (iii))
(99,840)
(102,548)
Income tax
487,446
463,088
Notes:
(i)
The provision for income tax of the Group is calculated based on a statutory rate of 25% of the assessable profit of the Group as determined in
accordance with the relevant PRC income tax rules and regulations for the years ended 31 December 2015 and 2014, except for certain
domestic subsidiaries of the Group, which are taxed at preferential rates of 20%, 15% and 10%, where applicable; and for certain overseas
subsidiaries of the Group, which are taxed at respective statutory rates.
(ii)
The amount includes personnel and other miscellaneous expenses in excess of statutory deductible limits for tax purposes.
(iii)
The amounts primarily represent the effect of additional deductions in research and development expense.
11. OTHER COMPREHENSIVE INCOME
Available-for-sale securities
2015
2014
RMB’000
RMB’000
Changes in fair value recognised during the year
16,312
10,233
Net deferred tax debited to other comprehensive income
(2,447)
(1,535)
Net movement in the fair value reserve during the year recognised in
other comprehensive income
13,865
8,698
