Vtech 2008 Annual Report Download - page 40

NOTES TO THE FINANCIAL STATEMENTS
VTech Holdings Ltd Annual Report 2008
38
3 DIRECTORS’ AND INDIVIDUALS’ EMOLUMENTS
CONTINUED
Individuals with highest emoluments
Of the  ve individuals with the highest emoluments, three
(2007: two) are directors whose emoluments are set out above.
The aggregate of the emoluments in respect of the other two
(2007: three) individuals are as follows:
2008 2007
US$ million US$ million
Salaries, allowances and bene ts
in kind 0.5 0.9
Bonuses 3.1 1.0
Contribution to retirement bene t
schemes –0.1
Share-based payments ––
3.6 2.0
The emoluments fell within the following bands:
2008 2007
Individuals Individuals
US$
449,001–513,000 –1
577,001–641,000 –1
897,001–961,000 –1
1,025,001–1,089,000 1–
2,625,001–2,689,000 1–
23
During the years ended 31st March 2007 and 31st March 2008,
there were no amounts paid to directors and individuals for
compensation for loss of o ce and inducement for joining the
Group.
4 TAXATION
2008 2007
Note US$ million US$ million
Current tax
– Hong Kong 16.3 14.9
– Overseas 6.8 3.9
(Over)/under-provision in
respect of prior years
– Overseas (0.1) 0.1
Deferred tax
– Origination and
reversal of temporary
di erences 9 (1.1) (0.3)
21.9 18.6
(a) Tax on pro ts has been calculated at the rates of taxation
prevailing in the countries in which the Group operates.
On 27th February 2008, the Hong Kong SAR Government
announced a proposed reduction in the pro t tax rate from
17.5% to 16.5% applicable to the operations in Hong Kong with
e ect from the year of assessment 2008/09. Accordingly, the
provision for deferred Hong Kong pro ts tax assets/(liabilities) as
at 31st March 2008 is calculated at 16.5% (2007: 17.5%).
(b) Reconciliation between the e ective income tax rate and
the statutory domestic income tax rate
The consolidated e ective income tax rate for the year ended
31st March 2008 was 9.2% (2007: 9.2%). The e ective income tax
rate is reconciled to the statutory domestic income tax rate as
follow:
2008 2007
%%
Statutory domestic income tax rate 17.5 17.5
Di erence in overseas income tax
rates 1.1 0.7
Non-temporary di erences (6.6) (7.0)
Tax losses not recognised 1.1 1.2
Others (3.9) (3.2)
E ective income tax rate 9.2 9.2
5 DIVIDENDS
2008 2007
Note US$ million US$ million
Interim dividend of US12.0
cents (2007: US9.0 cents)
per share declared and
paid 18 29.1 21.5
Special dividend in respect
of 2007 of US30.0 cents
per share declared and
paid 18 –71.7
29.1 93.2
Final dividend of US51.0
cents (2007: US41.0
cents) per share
proposed after the
balance sheet date 124.2 98.0
The  nal dividend proposed after the balance sheet date has
not been recognised as a liability at the balance sheet date.
The  nal dividend of US41.0 cents per ordinary share for the
year ended 31st March 2007, but proposed after that date,
was estimated to be US$98.0 million at the time, payable
to shareholders, whose names appeared on the register of
members of the Company at the close of business on
3rd August 2007. This  nal dividend was approved by
shareholders at the Annual General Meeting on 3rd August
2007. As a result of shares issuance upon exercise of share
options during the period between 1st April 2007 and
3rd August 2007, the  nal dividend paid in respect of the year
ended 31st March 2007 totaled US$98.8 million.