ESR Group Limited Annual Report 2023 203 Notes to the Consolidated Financial Statements 31 December 2023 29. DEFERRED TAX (continued) The movements in deferred tax liabilities during the years ended 31 December 2023 and 2022 are as follows: Fair value adjustments of investment properties Gain on fair value change of financial assets at fair value through profit or loss Fair value adjustments arising from acquisition of subsidiaries Unbilled revenue Others Total US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 31 December 2023 At 1 January 2023 250,762 7,100 322,827 20,751 16,064 617,504 Acquisition of subsidiaries — — — — 36 36 Deferred tax charged/(credited) to profit or loss during the year 23,403 761 (9,711) (2,679) (1,150) 10,624 Disposal of subsidiaries (note 36) (36,602) — — — — (36,602) Exchange realignment (8,868) (549) 151 (708) (750) (10,724) At 31 December 2023 228,695 7,312 313,267 17,364 14,200 580,838 31 December 2022 At 1 January 2022 305,696 8,130 26,208 10,074 5,104 355,212 Acquisition of subsidiaries — — 305,346 717 5,626 311,689 Deferred tax charged/(credited) to profit or loss during the year 38,239 (391) (8,399) 11,329 6,510 47,288 Disposal of subsidiaries (66,608) — — (420) — (67,028) Exchange realignment (26,565) (639) (328) (949) (1,176) (29,657) At 31 December 2022 250,762 7,100 322,827 20,751 16,064 617,504 In accordance with China laws and regulations, tax losses could be carried forward for five years to offset against future taxable profits. Deferred tax assets relating to unutilised tax losses are recognised to the extent that it is probable that sufficient taxable profit will be available to allow such deferred tax assets to be utilised. The Group had unused tax losses available for offsetting against future profits in respect of certain subsidiaries of US$38,642,000 as at 31 December 2023 (2022: US$31,284,000), and the deferred tax assets have not been recognised. No deferred tax assets have been recognised in respect of these losses due to the unpredictability of future available taxable profit of the subsidiaries to offset against the unused tax losses. The available period of the unused tax losses will expire in one to five years for offsetting against future taxable profits. Pursuant to China Corporate Income Tax Law, a 10% withholding tax is levied on dividends declared to foreign investors from the foreign investment enterprises established in China. The requirement becomes effective on 1 January 2008 and applies to earnings after 31 December 2007. A lower withholding tax rate may be applied if there is a tax treaty between China and the jurisdiction of the foreign investors. The Group is therefore liable to withholding taxes on dividends distributed by its subsidiaries, joint ventures and associates established in China in respect of earnings generated from 1 January 2008. CORPORATE GOVERNANCE FINANCIAL STATEMENTS STRATEGIC REPORTS
RkJQdWJsaXNoZXIy MTIwODcxMw==