ANNUAL FINANCIAL STATEMENTS 2023
For the year ended 30 September 2023
For the year ended 30 September 2023
| 10 | TAXATION |
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The income tax expense represents the sum of current tax payable (both current and deferred). Normal tax – current The normal tax is based on taxable profit for the year. Taxable profit differs from profit as reported in the income statements because it excludes items of income or expense that are taxable or deductible in other years, and it further excludes items that are never taxable or deductible. Normal tax may include under or overprovisions relating to prior year taxation. The group's liability for normal tax is calculated using tax rates that have been enacted or substantively enacted by the reporting date. Normal tax relating to items recognised outside profit or loss is recognised outside profit or loss. Normal tax items are recognised in correlation to the underlying transaction either in other comprehensive income or directly in equity. Normal tax – deferred Deferred tax is calculated on the liability method. Dividends withholding tax A dividend withholding tax of 20% is withheld on behalf of the taxation authority on dividend distributions, where applicable. The net amount payable to the taxation authority is included as part of trade and other payables at the time a dividend is declared. |
| GROUP | COMPANY | |||||
| (R’million) | 2023 | 2022 | 2023 | 2022 | ||
|---|---|---|---|---|---|---|
| Income tax | ||||||
| 10.1 | South African current taxation | (627,4) | (836,4) | (7,8) | (12,8) | |
| Withholding and foreign taxes | (101,4) | (126,7) | (3,9) | (11,3) | ||
| (728,8) | (963,1) | (11,7) | (24,1) | |||
| Deferred taxation – temporary differences | (80,0) | (64,5) | – | – | ||
| Deferred taxation – tax rate adjustments | – | 8,3 | – | 0,2 | ||
| (808,8) | (1 019,3) | (11,7) | (23,9) | |||
| Adjustments in respect of previous years | ||||||
| – Current taxation | (3,9) | 2,8 | (2,2) | (0,1) | ||
| – Deferred taxation | (3,6) | 1,3 | – | – | ||
| (816,3) | (1 015,2) | (13,9) | (24,0) | |||
| Taxation on impairments, fair value losses and non-operational items | ||||||
| – Current | (38,1) | (7,9) | – | – | ||
| – Deferred | 37,3 | 3,6 | – | – | ||
| (817,1) | (1 019,5) | (13,9) | (24,0) | |||
| 10.2 | The reconciliation of the effective rate of taxation with the statutory taxation rate is as follows: | % | % | % | % | |
| Taxation for the year as a percentage of income before taxation | 23,5 | 26,0 | 0,7 | 0,6 | ||
| Impairment of goodwill and intangibles | 0,1 | – | – | – | ||
| Tax rate adjustment | – | 0,2 | – | – | ||
| Dividend income | 0,1 | 0,2 | 26,9 | 28,4 | ||
| Expenses and provisions not allowed for taxation1 | (0,8) | (0,7) | (0,4) | (0,9) | ||
| Additional investment allowances | 0,4 | (0,4) | – | – | ||
| Adjustments in respect of previous years | (0,2) | 0,1 | (0,1) | – | ||
| Withholding taxes | (0,7) | (0,6) | (0,2) | (0,3) | ||
| Income from associates | 4,9 | 3,4 | – | – | ||
| Effect of differing rates of foreign taxes | (0,4) | (0,2) | – | – | ||
| Other sundry adjustments2 | 0,1 | – | 0,1 | 0,2 | ||
| Rate of South African company taxation | 27,0 | 28,0 | 27,0 | 28,0 | ||
| Tax effect of current year losses available to reduce future taxable income | – | – | – | – | ||
| 10.3 | Reconciliation of movement on deferred taxation | |||||
| Movement recognised in the income statement for the year | ||||||
| Current year charge | (80,0) | (64,5) | ||||
| Tax rate adjustment | – | 8,3 | – | 0,2 | ||
| Adjustments in respect of previous years | (3,6) | 1,3 | ||||
| Deferred tax on impairments and non-operational items | 37,3 | 3,6 | ||||
| (46,3) | (51,3) | – | 0,2 | |||
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