Lenovo 2016 Annual Report Download - page 199

197
2015/16 Annual Report Lenovo Group Limited
8 FINANCE INCOME AND COSTS
(a) Finance income
2016
US$’000
2015
US$’000
Interest on bank deposits 30,623 28,793
Interest on money market funds 2,184 2,092
Others 917
32,816 30,902
(b) Finance costs
2016
US$’000
2015
US$’000
Interest on bank loans and overdrafts 31,911 28,658
Interest on long term notes 100,950 64,925
Interest on promissory note 38,632 16,599
Factoring costs 49,469 54,075
Commitment fee 4,601 10,787
Interest on contingent considerations and put option liability 7,125 7,068
Others 4,063 3,392
236,751 185,504
9 TAXATION
The amount of taxation in the consolidated income statement represents:
2016
US$’000
2015
US$’000
Current tax
– Hong Kong profits tax (8,488)26,041
– Taxation outside Hong Kong 379,220 193,810
Deferred tax (Note 20)(503,008)(85,487)
(132,276)134,364
Hong Kong profits tax has been provided at the rate of 16.5% (2015: 16.5%) on the estimated assessable profit
for the year. Taxation outside Hong Kong represents income and irrecoverable withholding taxes of subsidiaries
operating in the Chinese Mainland and overseas, calculated at rates applicable in the respective jurisdictions.
The Group has been granted certain tax concessions by tax authorities in the Chinese Mainland and overseas
whereby the subsidiaries operating in the respective jurisdictions are entitled to tax concessions.