NewWorld Development Company Limited
FINANCIAL SECTION
148
11 TAXATION
(continued)
Mainland China land appreciation tax is provided at progressive rates ranging from 30% to 60% (2014: 30% to
60%) on the appreciation of land value, being the proceeds of sale of properties less deductible expenditures
including costs of land use rights and property development expenditures.
Share of results of joint ventures and associated companies is stated after deducting the share of taxation of joint
ventures and associated companies of HK$1,085.8 million and HK$191.7 million (2014: HK$942.1 million and
HK$121.8 million) respectively.
The taxation on the Group’s profit before taxation differs from the theoretical amount that would arise using the
taxation rate of Hong Kong as follows:
2015
2014
HK$m
HK$m
Profit before taxation and share of results of joint ventures and
associated companies
27,479.2
15,979.5
Calculated at a taxation rate of 16.5% (2014: 16.5%)
4,534.1
2,636.6
Effect of different taxation rates in other countries
644.9
843.9
Income not subject to taxation
(3,390.1)
(1,106.0)
Expenses not deductible for taxation purposes
627.7
855.6
Tax losses not recognised
589.1
318.8
Temporary differences not recognised
59.8
41.2
Tax exemption granted
–
(1.2)
Utilisation of previously unrecognised tax losses
(101.9)
(108.1)
Deferred taxation on undistributed profits
153.2
268.3
Recognition of previously unrecognised temporary differences
5.2
98.5
(Over)/under-provision in prior years
(71.7)
68.8
Land appreciation tax deductible for calculation of income tax purposes
(416.9)
(604.6)
Others
(36.6)
1.4
2,596.8
3,313.2
Mainland China land appreciation tax
1,667.6
2,425.0
Taxation charge
4,264.4
5,738.2
