WILLAS-ARRAY ELECTRONICS (HOLDINGS) LIMITED
146
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED MARCH 31, 2016
26. DEFERRED TAX
The following are major deferred tax assets (liabilities) recognised and movements thereon during
the year:
Revaluation
of leasehold Accelerated
Undistributed
land and
tax
profits of
buildings depreciation Allowance subsidiaries
Total
HK$’000
HK$’000
HK$’000
HK$’000
HK$’000
THE GROUP
Balance at April 1, 2014
–
(1,108)
1,447
(2,791)
(2,452)
Credit (charge) to profit or loss
–
(167)
770
1,183
1,786
Charge to other comprehensive
income
(24,695)
–
–
–
(24,695)
Balance at March 31, 2015
(24,695)
(1,275)
2,217
(1,608)
(25,361)
Credit (charge) to profit or loss
818
219
(1,537)
645
145
Currency realignment
649
–
–
–
649
Balance at March 31, 2016
(23,228)
(1,056)
680
(963)
(24,567)
Under the new enterprise income tax law in the PRC and implementation regulations issued by the
State Council, withholding tax at 10% or a lower treaty rate is imposed on dividends declared in
respect of profits earned by the PRC subsidiary from January 1, 2008 onwards.
Under the Income Tax Act prescribed by the Ministry of Finance of Taiwan, dividends paid to non-
resident shareholders shall be subject to withholding tax at a rate of 20%. Also, a 10% surtax is
imposed on any current year earnings that remain undistributed by the end of the following year.
The surtax paid limited to 5% (2015:10%) can be used as a tax credit to offset against the future
withholding tax payable upon dividend distribution under calculations prescribed under Article 61-1
of Enforcement Rules of Income Tax Act.
