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141
Glorious Property
Annual Report 2011
Notes to the Consolidated Financial Statements
(Continued)
31 December 2011
31 Income Tax Expenses
RMB’000
2011
2010
Current income tax
— PRC corporate income tax
767,853
598,699
— PRC land appreciation tax
886,800
1,026,898
1,654,653
1,625,597
Deferred income tax (note 21)
— Origination and reversal of temporary differences
157,291
727,854
157,291
727,854
1,811,944
2,353,451
The income tax on the Group’s profit before income tax differs from the theoretical amount that would arise using
the enacted tax rate of the home country of the companies comprising the Group as follows:
RMB’000
2011
2010
Profit before income tax
4,021,025
5,962,229
Calculated at PRC corporate income tax rate of 25%
1,005,256
1,490,557
Expenses not deductible for tax purposes
172,050
123,737
Income not taxable for tax purposes
(24,146)
(26,335)
Tax losses not recognised as deferred income tax assets
12,727
1,972
Recognition of previously unrecognised tax losses
(17,741)
(11,592)
Provision for land appreciation tax
886,800
1,026,898
Tax effect on land appreciation tax
(223,446)
(231,100)
Effect of different tax rates applicable to different companies within the Group
(1,551)
(20,733)
Others
1,995
47
Income tax expenses
1,811,944
2,353,451
PRC corporate income tax is provided at the rate of 25% for each of the years ended 31 December 2010 and 2011
of the profits for the PRC statutory financial reporting purpose, adjusted for those items, which are not assessable or
deductible for the PRC corporate income tax purpose.
No Hong Kong profits tax has been provided for the years ended 31 December 2010 and 2011 as there is no
assessable profit for these years.