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31 December 2012
NOTESTO FINANCIAL STATEMENTS
90 GEO ENERGY RESOURCES LIMITED | Annual Report 2012
31 INCOME TAX EXPENSE
Group
2012 2011
US$ US$
Current tax 6,935,433 3,603,940
Deferred tax (Note 23) 429,619 1,227,637
Income tax expense 7,365,052 4,831,577
Domestic income tax for Singapore incorporated companies is calculated at 17% (2011 : 17%) of the estimated
assessable proft for the year. Taxation for other jurisdictions is calculated at the rates prevailing in the relevant
jurisdictions.
Majority of the Company’s subsidiaries operate in Indonesia and hence, they are subject to Indonesian
tax law. In accordance to the Indonesian tax law No. 36/2008, the fourth amendment of tax law
No. 7/1983 on income taxes, the corporate tax rate is set at 25% (2011 : 25%).
The total charge for the fnancial year can be reconciled to the accounting proft as follows:
Group
2012 2011
US$ US$
Proft before income tax 26,532,139 19,272,176
Tax at statutory rate of 25% (2011 : 25%) * 6,633,035 4,818,044
Tax effect of expenses that are not deductible in determining taxable proft 594,275 83,567
Tax effect of income that are not taxable in determining taxable proft (7,253) (45,104)
Tax exemption (24,827) (24,930)
Effect of different tax rates of companies operating in other jurisdictions 169,822 –
Income tax expense 7,365,052 4,831,577
* Statutory income tax is calculated at a rate in which the Company’s signifcant subsidiaries are domiciled, i.e., Indonesian
income tax rate.