
	2022			2021		2020
	$			$		$
Current tax - Hong Kong Profits Tax
Provision for the year		7,338,274			1,164,222		—
Current tax - Overseas
Provision for the year		88,463			38,475		19,671
Deferred tax
Origination and reversal of temporary differences		(279,633	)		2,530,047		(1,957,229	)

Tax expense/(credit)		7,147,104			3,732,744		(1,937,558	)

Notes:

(i)

The provision for Hong Kong Profits Tax is calculated by applying the estimated annual effective tax rate of 16.5% for years ended December 31, 2022 and 2021, except for one subsidiary of the Group which is a qualifying corporation under the

two-tiered

Profits Tax rate regime. No provision has been made for Hong Kong Profits Tax

for the year ended December 31, 2020

as the subsidiary in Hong Kong had unutilized tax loss to

set-off

against taxable income.

(ii)

Pursuant to the income tax rules and regulations of the United Kingdom, the applicable corporate tax is calculated at 19% of the estimated taxable profits. No

provision had been made as these subsidiaries had unutilized tax loss to set-off against taxable income or had sustained losses for taxation purposes for the year ended December 31, 2022, 2021 and 2020.

The Finance Act 2021 was enacted on June 10, 2021 and include

an increase in the corporate tax rate to 25% which will be effective from April 1, 2023. As a result, the deferred tax assets and liabilities as at December 31, 2021

and 2022

that are expected to be crystalized after April 1, 2023 are calculated using the rate of 25%.

(iii)

Taxation for other overseas subsidiaries and branch is charged at the appropriate current rates of taxation ruling in the relevant countries.

(b)	Reconciliation of effective tax rate:


	2022			2021			2020
	$			$			$
Loss before taxation		(183,306,283	)		(170,284,098	)		(3,901,443	)

Notional tax on loss before taxation, calculated at the applicable rate		(18,117,948	)		(6,622,976	)		(697,772	)
Tax effect of non-deductible expenses		25,595,035			11,587,117			1,111,877
Tax effect of non-taxable income		(168,565	)		(1,008,915	)		(76,874	)
Tax effect of temporary difference not recognized		—			—			73,833
Tax effect on utilization of previously unrecognized tax losses		—			(579,657	)		(692,350	)
Tax effect of tax losses not recognized		101,854			—			298,651
Tax effect of previously unrecognized temporary differences recognized in current year		(263,272	)		360,922			(1,957,229	)
Others		—			(3,747	)		2,306

		7,147,104			3,732,744			(1,937,558	)

(c)	Movement in deferred tax balances:

The components of deferred tax (assets)/liabilities recognized in the consolidated statement of financial position and the movements during the years ended December 31, 2020, 2021 and 2022 are as follows:


	Depreciation allowances in excess of the related depreciation			Tax losses recognized			Intangible assets arising from business combination			Total
	$			$			$			$
Deferred tax arising from:
At January 1, 2020		36,504			(1,169,865	)		1,133,361			—
Charged/(credited) to profit or loss		315,514			(2,138,179	)		(134,564	)		(1,957,229	)
Exchange differences		12,727			(39,709	)		33,057			6,075

At December 31, 2020 and January 1, 2021		364,745			(3,347,753	)		1,031,854			(1,951,154	)
Charged to profit or loss		906,775			1,528,881			94,391			2,530,047
Exchange differences		(3,839	)		9,710			(4,968	)		903

At December 31, 2021 and January 1, 2022		1,267,681			(1,809,162	)		1,121,277			579,796
(Credited)/charged to profit or loss		(957,459	)		1,799,103			(1,121,277	)		(279,633	)
Additions from acquisition (note 33(C))		63,666			(235,879	)		2,850,000			2,677,787
Exchange differences		(38,448	)		2,489			—			(35,959	)

At December 31, 2022		335,440			(243,449	)		2,850,000			2,941,991


	2022			2021
	$			$
Represented by:
Deferred tax assets		(243,449	)		(79,702	)
Deferred tax liabilities		3,185,440			659,498

		2,941,991			579,796

(d)	Unrecognized deferred tax assets

The Group has not recognized deferred tax assets in respect of cumulative tax losses of $62,586,553 (2021: nil; 2020: $

3,050,828)

as it is not probable that future taxable profits against which the losses can be utilized will be available in the relevant tax jurisdictions and entities.

The expiry dates of the cumulative tax losses are as follows:


	2022		2021
	$		$
Within 1 year		893,511		—
Over 1 year but within 5 years		14,362,136		—
Over 5 years but within 10 years		25,085,050		—
Do not expire under the relevant tax legislations		22,245,856		—

		62,586,553		—