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Income Tax Expense
12 Months Ended
Dec. 31, 2022
Income Tax Expense  
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.