Investor Presentaiton
MORGAN STANLEY BANK ASIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2020
10. INCOME TAX (CONTINUED)
Reconciliation of effective tax rate
The current year income tax expense is lower (2019: lower) than that resulting from applying the standard
rate of profits tax in Hong Kong for the year of 16.5% (2019:16.5%). The main differences are explained
below:
2020
US$'000
2019
US$'000
Profit before income tax
156,050
100,026
Income tax using the standard rate of profits tax in
Hong Kong of 16.5%
25,748
16,504
Impact on tax of:
Expenses not deductible for tax purposes
741
Tax exempt income
(956)
1,362
(1,734)
Concessionary tax rate
(1,268)
(712)
Effect of tax rates in foreign jurisdiction
138
81
Tax under provided in prior years
Withholding tax expensed
Other
36
145
5
(36)
(83)
Total income tax in the income statement
24,403
15,568
In addition to the amount charged to the income statement, the aggregate amount of current and deferred
tax relating to each component of other comprehensive income was as follows:
FVOCI reserve:
Net change in fair value
Net amount reclassified to income
Statement
Other comprehensive income
Before
tax
US$'000
2020
Tax
(expense)/
benefit
US$'000
2019
Net of
tax
US$'000
Before
tax
US$'000
Tax
(expense)/
benefit
US$'000
Net of
tax
US$'000
(1,542)
247
(1,295)
427
(60)
367
(6)
1
(5)
(1,542)
247
(1,295)
421
(59)
362
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