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LIPPO MALLS INDONESIA RETAIL TRUST ANNUAL REPORT 2014
10. INCOME TAX (CONT’D)
10A. Components of tax expense recognised in statements of total return include (Cont’d):
The amount of current income taxes outstanding for the Group as at end of reporting year was $6,538,000
(2013: $9,010,000). Such an amount is net of tax advances, which, according to the tax rules, was paid before the
year-end.
Please refer to Note 12 for income tax on distributions to unitholders.
10B. Deferred tax expense/(income) recognised in statements of total return includes:
Group
2014
2013
$’000
$’000
Deferred tax expense/(income) relating to the changes in fair value
of investment properties
1,820
(16,626)
10C. Deferred tax balance in the statements of financial position:
Group
2014
2013
$’000
$’000
Deferred tax liabilities recognised in statements of total return:
Deferred tax relating to the changes in fair value of investment properties
51,107
49,287
It is impracticable to estimate the amount expected to be settled or used within one year.
Temporary differences arising in connection with interests in subsidiaries are insignificant.
Taxation of Income from Indonesia Properties
Corporate Income Tax in Indonesia
Article 3 of Indonesian Government Regulation No. 5 /2002 on the payment of income tax on income from the lease
of land and/or building stipulates that income tax on income received or acquired by individuals or entities from
the leasing of land and/or buildings consisting of land, houses, multi-storey houses, apartments, condominiums,
office buildings, office-cum-living space, shops, shop cum house, warehouse, and industrial space which is received
or earned from a tenant acting or appointed as a tax withholder, is to be withheld by the tenant. The tax rate is 10%
of the gross value of the land and/or building rental and is final in nature.
Notes to the Financial Statements
(Cont’d)
31 December 2014
