NOTES TO
FINANCIAL STATEMENTS
December 31, 2015
30
FINANCE COSTS
Group
2015
2014
US$’000
US$’000
Interest on bank term loans
2,221
2,632
Charges on banker’s guarantee
–
31
Interest on obligation under finance leases
9
11
2,230
2,674
31
INCOME TAX EXPENSE
Income tax recognised in profit or loss:
Group
2015
2014
US$’000
US$’000
Current income tax:
Current year
1,085
1,742
(Over) Under provision in respect of prior years
(6)
173
Deferred tax:
Current year
14
7
Overprovision in respect of prior years
(1)
–
1,092
1,922
Domestic income tax is calculated at 17% (2014 : 17%) of the estimated assessable profit for the year. Taxation
for other jurisdictions is calculated at the rates prevailing in the relevant jurisdictions.
The Company has been granted an extension of the status of the Approved International Shipping Enterprise
(“AIS”) with effect from September 15, 2014 for a period of 10 years. The AIS incentive exempts certain income
derived by the Company from Singapore Income Tax, subject to compliance with the relevant conditions under
the scheme and those income not qualifying for incentive will be taxable at the existing corporate income tax
rate.
The income of Foremost Maritime Pte Ltd, a subsidiary, which arises from shipping activities, is exempted from
income tax in accordance with section 13A of the Singapore Income Tax Act, Cap. 134.
Income arising from other activities do not enjoy the above-mentioned income tax incentives and exemption.
The income of the other companies in the Group are subject to the relevant income tax laws and regulations
in the respective countries in which they operate.
129
FOCUSED & RESILIENT
SAMUDERA SHIPPING LINE LTD
ANNUAL REPORT 2015
