Deferred taxation as of year-end represents the taxation effect of the following temporary differences, taking into consideration the offsetting of balances related to the same tax authority:
| Note | 2016 | 2017 | ||||||||||
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Net deferred tax assets after offsetting: |
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Deferred tax assets: |
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Allowance for doubtful debts |
1,553 | 1,603 | ||||||||||
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Unrecognized revaluation surplus on prepayments for the leasehold land determined under PRC regulations |
(i) | 1,451 | 1,403 | |||||||||
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Accruals of expenses not yet deductible for tax purpose |
1,693 | 2,554 | ||||||||||
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Deferred revenue on subscriber points reward program |
156 | 183 | ||||||||||
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Unrealized income for the inter-company transactions |
189 | 120 | ||||||||||
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Unrealized income from the transactions with Tower Company |
787 | 697 | ||||||||||
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Government grants related to assets |
271 | 363 | ||||||||||
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Intangible assets amortization difference |
345 | 423 | ||||||||||
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Deductible tax losses |
2,433 | 2,244 | ||||||||||
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Others |
488 | 1,019 | ||||||||||
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| 9,366 | 10,609 | |||||||||||
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Deferred tax liabilities: |
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Gain from Tower Assets Disposal |
(1,118 | ) | (745 | ) | ||||||||
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Accelerated depreciation of property, plant and equipment |
(ii) | (2,243 | ) | (3,870 | ) | |||||||
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Others |
(19 | ) | (21 | ) | ||||||||
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| (3,380 | ) | (4,636 | ) | |||||||||
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| 5,986 | 5,973 | |||||||||||
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Net deferred tax liabilities after offsetting: |
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Deferred tax liabilities: |
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Accelerated depreciation for tax purpose |
(113 | ) | (108 | ) | ||||||||
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| (113 | ) | (108 | ) | |||||||||
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| (i) | The prepayments for the leasehold land were revalued for PRC tax purposes as of December 31, 2003 and 2004. However, the resulting revaluations of the prepayments for the leasehold land were not recognized under IFRSs. Accordingly, deferred tax assets were recorded by the Group under IFRSs. |
| (ii) | According to “Announcement on Enterprise Income Tax Policy for Those Enterprise Involved in the Accelerated Depreciation of Property, Plant and Equipment” (Caishui [2014] No.75) issued by the MOF and the SAT of the PRC, starting from 2014, the Group’s property, plant and equipment that comply with this tax policy are allowed to be depreciated under the accelerated depreciation method, or fully deducted for tax purpose in the year of purchase. Temporary differences arise from the different useful life under tax basis and accounting basis have been recorded as deferred tax liabilities. |