Annual Report 2024

Dar Al-Maal Al-Islami Trust NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2024 in thousands of USD 51 32. General and administrative expenses 2024 2023 Office expenses 50,509 42,289 Professional fees 12,088 10,215 IT expenses 14,773 13,923 Other 41,119 31,675 118,489 98,102 33. Taxes 2024 2023 Current taxes charge (Note 19) 96,900 80,350 Deferred taxes reversal (Note 19) (5,651) (9,680) 91,249 70,670 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: 2024 2023 Net accounting 11,535 7,530 Attributable to zero tax jurisdictions (137,298) (142,223) Attributable to taxable jurisdictions 148,833 149,753 Weighted average tax rate 35% 35% Weighted average effective tax 51,974 52,583 Government levied exceptional tax 39,275 18,087 Effective tax expense 91,249 70,670 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 arise from the banking subsidiary in Pakistan. Deferred tax assets mainly arise due to different treatment within tax law for provision for impairment in investment in financing and diminution in the value of investment. Similarly, deferred tax liabilities arise mainly on account of revaluation of fixed assets and different depreciation rates within the tax law. The utilisation of the deferred tax asset is dependent on future taxable profits in excess of the profit arising from the reversal of the existing taxable temporary differences. 34. Non-controlling interests The consolidated financial statements include 100% of the assets, liabilities and earnings of consolidated companies. The ownership interests of the other shareholders are called non-controlling interests.