Page 109 - China Mobile Limited - Annual Report 2012

China Mobile Limited
Annual Report 2012
103
Notes to the Financial Statements
(Expressed in Renminbi unless otherwise indicated)
11 Taxation (Continued)
(b) Reconciliation between income tax expense and accounting profit at applicable tax
rates:
2012 2011
RMB million RMB million
Profit before taxation 171,300 166,582
Notional tax on profit before tax, calculated at the PRC’s statutory tax
rate of 25% (note) 42,825 41,645
Tax effect of non-taxable items
– Share of profit of associates (1,421) (1,076)
– Interest income (23) (8)
Tax effect of non-deductible expenses on the PRC operations 970 736
Tax effect of non-deductible expenses on Hong Kong operations 82 66
Rate differential of certain PRC operations (175) (198)
Rate differential on Hong Kong operations (114) (16)
Tax credit on purchase of domestic telecommunications equipment (64) (171)
Others (161) (375)
Taxation 41,919 40,603
Note: The PRC’s statutory tax rate is adopted as the majority of the Group’s operations are subject to this rate.