DMIT_Annual_Report_2018_EN

N OTES TO THE C ONSOLIDATED F INANCIAL S TATEMENTS (Thousands of US dollars) Dar Al-Maal Al-Islami Trust 80 31. Proposed dividend No dividend has been proposed for 2018 (2017: Nil). 32. Taxes 2018 2017 Current taxes 16,842 17,089 Deferred taxes 10,576 9,336 27,418 26,425 The expected income tax expense for the Group is an aggregate of individual amounts representing the mix of profits and losses and the applicable tax rates in each jurisdiction. Consequently, the effective tax rate on consolidated income may vary from year to year, according to the source of earnings. Most affiliates of the Group operate in tax free jurisdictions. A reconciliation between the reported income tax and the amount computed, using the weighted average of applicable domestic corporate tax rates, is as follows: 2018 2017 Net accounting (loss) (17,450) (20,048) Attributable to zero tax jurisdictions (67,091) (75,851) Attributable to taxable jurisdictions 49,641 55,803 Weighted average tax rate 35% 44% Weighted average effective tax (17,616) (24,555) Government levied exceptional tax (9,802) (1,870) Effective tax expense (27,418) (26,425) The relationship between profit before taxes and non-controlling interests and the expected current income tax expense reflects the mix of profits earned in jurisdictions with relatively high tax rates and those with relatively low tax rates. Deferred tax assets and liabilities arises from the banking subsidiary in Pakistan. Deferred tax assets mainly arises due to different treatment within tax law for provision for impairment in investment in financing and diminution in the value of investment. Similarly differed tax liabilities arises mainly on account of revaluation of fixed assets and different depreciation rates within the tax law.