interpretation. Provisions are established where appropriate on the basis of amounts expected to be paid to the tax authorities. Tax is recognised in the statement of profit or loss except to the extent that it relates to items recognised directly in OCI. In this case, the item is recognised in OCI, net of tax. The Group and the Company recognise non-current tax recoverable on an undiscounted basis. (b) Zakat The Group and the Company recognise its obligation towards the payment of zakat on business income in the statement of profit or loss. Zakat payment is an obligation and is accrued based on 2.5% of profit before tax and determined according to the percentage of Muslim shareholding in the Company. NOTES TO THE FINANCIAL STATEMENTS 31 December 2023 TENAGA NASIONALBERHAD Integrated Annual Report 2023 294 38 TAXATION AND ZAKAT (CONTINUED) The taxation and zakat for the Group and the Company comprise: Group Company 2023 RM’million 2022 RM’million 2023 RM’million 2022 RM’million Current tax: - Malaysian corporate income tax 572.2 1,434.5 317.9 641.8 Deferred tax (Note 12) 158.9 322.2 35.7 218.9 Tax expense 731.1 1,756.7 353.6 860.7 Zakat 38.9 34.5 27.4 33.4 770.0 1,791.2 381.0 894.1 The analysis of the tax expense is as follows: Current tax: - Current financial year 599.4 1,469.2 352.8 674.2 - Over accrual in prior financial years (27.2) (34.7) (34.9) (32.4) 572.2 1,434.5 317.9 641.8 Deferred tax: - Origination and reversal of temporary differences (Note 12) 158.9 322.2 35.7 218.9 731.1 1,756.7 353.6 860.7 The explanation of the relationship between tax expense and profit before taxation and zakat is as follows: Group Company 2023 RM’million 2022 RM’million 2023 RM’million 2022 RM’million Profit before taxation and zakat 3,373.6 5,348.6 3,336.0 3,319.9 TaxcalculatedattheMalaysiancorporateincometaxrateof24% (2022:24%)809.71,283.7800.6796.8 Tax effects of: - Share of results of associates and joint ventures (15.0) (23.4) 0 0 - Income not subject to tax (266.3) (308.1) (210.7) (238.4) - Expenses not deductible for