66
Notes To The Financial Statements
VITROX CORPORATION BERHAD
[649966-K]
For The Financial Year Ended 31 December 2008
19. TAX EXPENSE
The Group
The Company
2008
2007
2008
2007
RM
RM
RM
RM
Tax based on results for the year:-
Malaysian income tax
223,934
188,995
11,187
10,045
Deferred tax
18,000
18,000
0
0
241,934
206,995
11,187
10,045
Tax under/(over) provided in prior year:-
Malaysian income tax
33,248
(28,967)
1,337
5,764
Deferred tax
0
262,000
0
0
275,182
440,028
12,524
15,809
The numerical reconciliation between the applicable tax rate, which is the statutory income tax rate, and the average effective
tax rate on results for the year is as follows:-
The Group
The Company
2008
2007
2008
2007
%
%
%
%
Applicable tax rate
26.00
27.00
26.00
27.00
Non-deductible expenses
1.96
1.29
0.98
2.05
Non-taxable income
(0.07)
(0.31)
(26.83)
(28.71)
Pioneer income exempted
(24.90)
(26.29)
0.00
0.00
Effect of lower tax rate
(0.18)
(0.30)
0.12
0.00
Average effective tax rate
2.81
1.39
0.27
0.34
Pursuant to the Finance Act 2007 (Act 683) gazetted on 28 December 2007, the statutory income tax rate has been reduced
from 27% to 26% for the financial year under review.
As at 31 December 2008, the Company has sufficient tax credits and tax exempt accounts to frank/distribute its retained profits
in full if paid out as dividends.
Tax incentives applicable to the Group are summarised below:-
The Company
The Company has been granted Multimedia Super Corridor (“MSC”) status by Multimedia Development Corporation Sdn. Bhd.
for the development of QFP/SO 3D Vision Inspection System, Leadless Package Vision Inspection System, BGA 3D Vision
Inspection System and Line Scan and Laser 3D Vision Inspection System (“Pioneer Products”). By virtue of its MSC status, the
Company has been granted pioneer status by the Ministry of International Trade and Industry Malaysia. Under this incentive,
100% of the Company’s statutory income from the Pioneer Products is exempted from income tax for a period of 5 years
(extendable for further 5 years) commencing 25 January 2005.
ViTrox Technologies Sdn. Bhd.
The subsidiary has been granted pioneer status by the Ministry of International Trade and Industry Malaysia for the development
and production of digital automated vision inspection equipment and modules (“Pioneer Products”). Under this incentive,
100% of the subsidiary’s statutory income from the Pioneer Products is exempted from income tax for a period of 5 years
(extendable for further 5 years) commencing 1 April 2005.
