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PTT Global Chemical Public Company Limited and its Subsidiaries Notes to the financial statements PTT Global Chemical Public Company Limited and its Subsidiaries For thetoperiod 19 October 2011 (amalgamation date) to 31 December 2011 Notes the financial statements For the period 19 October 2011 (amalgamation date) to 31 December 2011 Income tax reduction - deferred Summary of revenues from promoted and non-promoted businesses: On 11 October 2011, the Cabinet passed a resolution regarding tax measures to increase Thailand’s competitiveness and approved the reduction of the corporate income financial tax rate from 30% to 23% of net Consolidated statements taxable profit for the accounting period 2012 which ends on or after 31 December 2012 and to 20% of For the period net taxable profit for the accounting period which begins on or19after 1 January 2013 and onwards. October 2011 to 31 December 2011 In order to give effect to the above CabinetPromoted resolution, the Government has issued a Royal Decree Non-promoted under the Revenue Code regarding the Reduction and Exemption in Income 530) B.E. businesses businesses Taxes (No.Total 2554 to reduce the corporate income tax rate for the three accounting periods 2012, 2013 and 2014; (in million Baht) from 30% to 23% for the accounting period 2012 which begins on or after 1 January 2012 and to 20% Export sales 20,997 10,886 31,883 for the following two accounting periods 2013 and 2014 which begin on or after 1 January 2013 and Local sales 50,070 32,316 82,386 2014, respectively. It is understood that the Government will proceed to amend the law in order to Service income 129 1,568 1,697 maintain the corporate income tax rate at not higher than 20% for the accounting period 2015 which 71,196 44,770 115,966 begins on or after 1 January 2015 and onwards in order to give full effect to the Cabinet resolution Eliminations (11,136)
33
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Such announcement on the reduction of income tax rate has an impact on the measurement of deferred Total revenue 104,830 tax assets and deferred tax liabilities since Thai Accounting Standard No. 12 Income Taxes paragraph 47 states that deferred tax assets and liabilities shall be measured at the tax rates that are expected to Separate financial statements apply to the period when the asset is realized or the liability is settled, based on tax rates that have For the period been enacted or substantively enacted by the end of the reporting period. 19 October 2011 to December 2011has resolved that the The Federation of Accounting Professions has considered31this matter and Non-promoted substantively enacted tax rates which should Promoted be applied in measuring deferred tax assets and liabilities businesses shall be the reduced rates as approved by the Cabinet; i.e. 23% businesses shall be applied for the Total accounting period 2012 and 20% shall be applied for accounting periods 2013Baht) onwards. (in million Export sales 17,929 8,497 26,426 Promotional Local sales privileges 33,913 28,413 62,326 Service income 14 59 73 By virtue of the provisions of the Industrial Investment Promotion Act of B.E. 2520, the Group/Company the Board of Investment relating to production of Total revenue has been granted privileges by51,856 36,969 88,825 upstream, intermediate and downstream petrochemical, utilities and production support facilities, jetty for transportation and storage of liquid product and transportation by marine vessels, production of petroleum research and development of polymer products and chemical formula, lab testing Earningsproduct, per share services and refinery. The privileges granted include: Basic earnings per share (a) exemption from payment of import duty on machinery approved by the Board; The basicpayment earningsofperincome share for October 2011 31 December (b) calculation exemptionoffrom tax the forperiod certain19operations for atoperiod of eight 2011 yearswere and based three on theyears profitfrom for the the period 19 October 2011 to 31 December 2011 attributable to ordinary date on which the income is first derived from such operations with shareholders of the Company and weighted average of ordinary shares outstanding during additional conditions that nottheover 100 percent andnumber 70 percent of investment excluded land and the period as follows: working capital. Separate a 50% reduction in the normal income tax rateConsolidated on the net profit derived from certain operations statements for a period of five years, commencing fromfinancial the expiry date in (b) above. financial statements (in million Baht / million shares) Profit attributable to ordinary As promoted companies, the Company and its subsidiaries must comply with certain terms and shareholders of the in Company (basic) certificates. 2,113.44 606.66 conditions prescribed the promotional (c)
Number of ordinary shares outstanding at 19 October 2011 Effect of shares issued during the period
4,505.98 0.11
4,505.98 0.11