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Asia Media Group Berhad
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Annual Report 2015
Notes to the Financial Statements
(continued)
pg.
112
20. Income tax credit (cont’d)
Domestic current income tax is calculated at the Malaysian statutory tax rate of 25% (2014:
25%) of the estimated assessable loss for the year. For year assessment 2016, corporate tax
rate will be 24%. Consequently, deferred tax assets and liabilities are measured using this rate.
Subject to agreement with the tax authority, at the end of the reporting periods, the Group has
unutilised tax losses and unabsorbed capital allowance available to be carried forward for offset
against future taxable business income as follows:
Group
2015
RM
Unutilised tax losses
3,779,169
Unabsorbed capital allowance
38,864,089
42,643,258
The deferred tax assets arising from unutilised tax losses and capital allowances have only been
recognised to the extent that the Group has sufficient taxable temporary differences available,
as they arose from certain subsidiaries with recent history of losses and it is not probable that
future taxable profit will be available against which the unused tax losses and unabsorbed capital
allowances can be utilised. The unused tax losses and unabsorbed capital allowances are
available indefinitely for offsetting against future taxable profits, subject to no substantial change
in shareholding under the Income Tax Act, 1967 and guidelines issued by the tax authority.