Creative 2009 Annual Report Download - page 33

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33
CREATIVE฀TECHNOLOGY฀LTD฀AND฀ITS฀SUBSIDIARIES
8. INCOME TAXES
฀ ฀Group
฀ ฀ 2009฀ 2008฀
฀ US$’000฀ US$’000
Tax฀(credit)฀expense฀attributable฀to฀(loss)฀profit฀is฀made฀up฀of:
฀ Current฀income฀tax:
฀ -฀Tax฀expense฀for฀current฀financial฀year฀ 879฀ 3,333
฀ -฀Overprovision฀in฀prior฀financial฀years฀ (1,431)฀ (1,810)
฀ -฀Withholding฀tax฀ 212฀ 53
฀
฀ ฀ (340)฀ 1,576
฀ Deferred฀income฀tax:฀ ฀
฀ -฀Tax฀expense฀for฀current฀financial฀year฀(Note฀24)฀ 553฀ 159
฀ -฀Underprovision฀in฀prior฀financial฀years฀(Note฀24)฀ 52฀ -
฀ -฀Effect฀of฀change฀in฀Singapore฀tax฀rate฀(Note฀24)฀ (780)฀ -
฀ ฀ (175)฀ 159
฀ ฀
฀ ฀ (515)฀ 1,735
฀฀฀
The tax (credit) expense on (loss) profit differs from the amount that would arise using the Singapore standard rate of income
tax as explained below:
฀ Group
฀ ฀ 2009฀ 2008฀
฀ US$’000฀ US$’000
฀ (Loss)฀profit฀before฀income฀tax฀ (138,391)฀ 129,912
฀ Tax฀calculated฀at฀tax฀rate฀of฀17%฀(2008:฀18%)฀ (23,526)฀ 23,384
฀ Effects฀of฀ ฀
฀ ฀ -฀tax฀exempt฀loss฀(income)฀ 18,640฀ (1,805)
฀ ฀ -฀income฀not฀subject฀to฀tax฀ (193)฀ (26,624)
฀ ฀ -฀expenses฀not฀deductible฀for฀tax฀purposes฀฀ 1,900฀ 2,166
฀ ฀ -฀change฀in฀Singapore฀tax฀rate฀(Note฀24)฀ (780)฀ –
฀ ฀ -฀different฀tax฀rates฀in฀other฀countries฀ 3,183฀ 6,371
฀ ฀ -฀deferred฀tax฀assets฀not฀recognised฀ 3,147฀ –
฀ ฀ -฀utilisation฀of฀tax฀lossess฀and฀other฀reserves฀ (1,719)฀ –
฀ ฀ -฀overprovision฀in฀prior฀financial฀years฀ (1,379)฀ (1,810)
฀ ฀ -฀withholding฀tax฀ 212฀ 53
฀ Tax฀(credit)฀expense฀ (515)฀ 1,735
The Company was granted a Pioneer Certificate under the International Headquarters Award that will expire in March 2010.
Under the Pioneer Certificate, profits arising from qualifying activities will be exempted from income tax in Singapore,
subject to certain conditions.
AR09 pg1-64_Final.indd 33 10/2/2009 10:38:08 AM