Income Tax Expense |
12.Income Tax Expense | | | | | | | | | 2022 | | 2021 | | 2020 | | | $’000 | | $'000 | | $'000 | | | | | | | | Current taxes on income | | 108,842 | | 91,692 | | 95,107 | Deferred income taxes (note 16) | | (182,295) | | (73,712) | | 74,722 | Total taxes | | (73,453) | | 17,980 | | 169,829 | | | | | | | | Reconciliation of effective tax charge | | | | | | | Loss before income tax | | (543,850) | | (8,141) | | (152,853) | | | | | | | | Tax calculated at domestic tax rates applicable to profits in respective countries | | (193,607) | | (4,433) | | (66,049) | Tax effects of: | | | | | | | Tax incentives and income not subject to taxation | | (25,183) | | (46,175) | | (34,932) | Expenses not deductible for tax purposes | | 93,687 | | 76,059 | | 82,662 | Movement in deferred tax assets not recognized | | 79,477 | | 74,084 | | 181,403 | Change in tax base* | | (74,291) | | (86,184) | | — | Prior year (under)/over provision | | (562) | | 6,636 | | 478 | Goodwill impairment | | 40,937 | | — | | — | Withholding tax on distributable profits | | 5,967 | | — | | — | Other profit‑related taxes | | — | | 5,239 | | 876 | Foreign tax credit | | — | | — | | (3,570) | Effects of changes in tax rates** | | (4,845) | | (5,272) | | — | Non-deductible share-based payment expense | | — | | 1,441 | | 1,082 | Foreign exchange effects and other differences | | 4,967 | | (3,415) | | 7,879 | Total taxes | | (73,453) | | 17,980 | | 169,829 |
| | | | | | | Current income tax receivables | | 1,174 | | 128 | | — | Current income tax payables | | (70,008) | | (68,834) | | (48,703) | | | (68,834) | | (68,706) | | (48,703) |
* Effect of change in tax base of assets in Brazil following the legal merger of acquired businesses and group holding entities in 2022 and 2021. ** The rate of Education Tax, a component of the income tax charge in Nigeria, increased from 2% to 2.5% with effect from the year ended December 31, 2021. The rate applicable to deferred tax decreased from 40% to 35% in Zambia and from 28% to 27% in South Africa with effect from the year ended December 31, 2022. | | | | | | | The movement in the current income tax is as follows: | | | | | | | At beginning of year | | (68,706) | | (48,703) | | (30,140) | Additions through business combination (note 31) | | — | | (3,434) | | (1,538) | Charged to profit or loss | | (108,842) | | (91,692) | | (95,107) | Paid during the year | | 51,245 | | 29,147 | | 14,540 | Withholding tax netting off | | 54,878 | | 45,849 | | 59,986 | Exchange difference | | 2,591 | | 127 | | 3,556 | At end of year | | (68,834) | | (68,706) | | (48,703) |
Deferred income tax assets are recognized for deductible temporary differences and tax losses carried forward only to the extent that the realization of the related tax benefits are expected to be met through the reversal of taxable temporary differences and future taxable profits, any deferred tax assets are only recognized to the extent they are expected to reverse in a period when they will be offset by expected reversals in deferred tax liabilities. Refer to note 16 for deferred income tax.
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