6. INCOME TAX 2023 $’000 2022 $’000 Income tax expense Current tax expense 48,102 – Deferred tax benefit (771) – Adjustment1 728 – 48,059 – Numerical reconciliation of income tax to prima facie tax receivable: Profit before income tax 205,140 184 Tax at applicable rates 30.0% (2022: 25.0%)2 61,542 46 Research and development incentives (324) 281 Non-deductible share option expenses 879 497 Other non-deductible expenses/(non-assessable income) 99 122 Utilisation of previously unrecognised tax losses (13,905) (946) Change in tax rates (138) – Recognition of deferred tax asset for deductible temporary differences (689) – Adjustment1 728 – Difference in overseas tax rates (133) – Income tax expense 48,059 – Current tax Current tax liabilities Opening balance – – Income tax 48,102 – Witholding tax credits (10,983) – 37,119 – 1 The adjustment to tax expense relates to the utilisation of a foreign income tax offset rather than previously unrecognised tax losses in relation to the prior year income tax return. 2 The tax rate of the Group changed from the base rate of 25.0% to the full company tax rate of 30.0% effective 1 January 2023. Neuren is not a base rate entity for the year ended 31 December 2023 as its aggregated turnover for the year is greater than the aggregated turnover threshold of $50 million. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED Neuren Pharmaceuticals Limited Annual Report 2023 41
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