NOTES TO
FINANCIAL STATEMENTS
December 31, 2015
125
CITIC ENVIROTECH LTD.
Annual
Report
2015
33 PROFIT BEFORE INCOME TAX (cont’d)
Group
April 1,
April 1,
2015 to 2014 to
December
31,
March
31,
2015
2015
$’000
$’000
Employee benefits expense
27,503
26,009
Directors’ remuneration
2,242
1,655
Directors’ fee
180
198
Cost of defined contribution retirement plans
4,098
4,239
Total employee benefits expenses
34,023
32,101
Depreciation of property, plant and equipment
7,859
3,109
Amortisation of intangible assets
7,412
9,546
Amortisation of prepaid leases
691
472
Total depreciation and amortisation expenses
15,962
13,127
34 INCOME TAX EXPENSE
Current tax
13,035
6,505
Underprovision in prior years
134
39
Deferred tax (Note 18)
5,304
10,568
Withholding tax
388
368
Income tax expense
18,861
17,480
(a)
Except as disclosed below, the PRC entities are taxed at the statutory tax rate of 25% and
Hong Kong entities are taxed at the statutory rate of 16.5%;
(i)
CITIC Envirotech (Guangzhou) Co. Ltd (f.k.a. Novo Envirotech (Guangzhou) Co. Ltd),
Novo Envirotech (Tianjin) Co. Ltd and Memstar (Mianyang) Co. Ltd - The entities, being
high-tech enterprises, enjoy a 15% tax incentive with renewal annually.
(ii)
Aton Environmental (Shenyang) Co. Ltd and United Envirotech Water (Diaobingshan) Co.
Ltd – The entities, being productive foreign investment enterprises, enjoy a 12.5% tax
incentive with renewal annually.
(iii) United Envirotech Water (Changyi) Co. Ltd, CITIC Envirotech Water (Siyang) Co. Ltd
(f.k.a. United Envirotech Water (Siyang) Co. Ltd), United Envirotech Water (Hegang) Co.,
Ltd, Gaoyang Bushuilantian Water Co. Ltd are granted to claim tax exemption from
the PRC income tax for the first three years commencing its first profit-making year of
operations, after offsetting all tax losses carried forward from the previous years, and
thereafter, entitled to claim 50% relief from PRC income tax for the next three years.
