Annual Report 2015
FINANCIAL SECTION
147
10 FINANCING COSTS
2015
2014
HK$m
HK$m
Interest on bank loans and overdrafts
3,005.4
2,908.3
Interest on convertible bonds
–
410.2
Interest on fixed rate bonds and notes payable
2,210.6
1,708.8
Interest on loans from non-controlling shareholders
19.8
1.9
Total borrowing costs incurred
5,235.8
5,029.2
Capitalised as (note):
Cost of properties under development
(3,092.8)
(2,763.6)
Cost of property, plant and equipment under construction and
investment properties under development
(521.1)
(338.5)
1,621.9
1,927.1
Note: To the extent funds are borrowed generally and used for the purpose of financing certain properties under development,
property, plant and equipment under construction and investment properties under development, the capitalisation rate used
to determine the amounts of borrowing costs eligible for the capitalisation is 4.5% (2014: 4.2%) for the year.
11 TAXATION
2015
2014
HK$m
HK$m
Current taxation
Hong Kong profits tax
623.9
864.0
Mainland China and overseas taxation
1,706.6
2,069.4
Mainland China land appreciation tax
1,667.6
2,425.0
Deferred taxation (note 27)
Valuation of investment properties
178.5
143.8
Other temporary differences
87.8
236.0
4,264.4
5,738.2
Hong Kong profits tax has been provided at the rate of 16.5% (2014: 16.5%) on the estimated assessable profit for
the year.
Taxation on Mainland China and overseas profits has been calculated on the estimated taxable profit for the year
at the rates of taxation prevailing in the countries in which the Group operates. These rates range from 9% to 25%
(2014: 9% to 25%).
