164 CapitaLand Integrated Commercial Trust Notes to the financial statements Year ended 31 December 2024 25 FINANCE COSTS Group 2024 2023 $’000 $’000 Interest expense 354,968 344,832 Cash flow hedges, reclassified from hedging reserve (23,254) (30,511) Transaction costs 12,795 6,954 Interest from lease liabilities 885 800 345,394 322,075 26 TAXATION Group 2024 2023 $’000 $’000 Current tax expense Current year 5,349 6,937 (Over)/under provision in prior years (7,755) 4,637 (2,406) 11,574 Deferred tax expense Origination and reversal of temporary difference (4,052) (1,463) Total taxation (6,458) 10,111 Reconciliation of effective tax rate Total return for the year before tax 935,319 879,329 Tax calculated using Singapore tax rate of 17% (2023: 17%) 159,004 149,486 Effects of results of equity-accounted investees presented net of tax (5,295) (2,563) Effect of tax rates in foreign jurisdictions 78 (257) Non-deductible items 36,464 41,652 Non-taxable income (68,490) (66,779) Tax transparency (120,464) (116,065) (Over)/under provision in prior years (7,755) 4,637 (6,458) 10,111 Global minimum tax under Pillar Two Pillar Two legislation has been enacted or substantively enacted in certain jurisdictions the Group operates. The legislation has become effective for the Group’s financial year beginning 1 January 2024 for some of these jurisdictions that the Group operates in. The Group has performed an assessment of its potential tax exposure arising from Pillar Two legislation. Based on the assessment, most of the entities within the Group should qualify as an excluded entity under the Pillar Two Model Rules. However, there are a limited number of entities within the Group which may have Pillar Two tax exposures.
RkJQdWJsaXNoZXIy NTkwNzg=