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SEC Filings

20-F
IKANG HEALTHCARE GROUP, INC. filed this Form 20-F on 08/10/2018
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IKANG HEALTHCARE GROUP, INC.

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued

FOR THE YEARS ENDED MARCH 31, 2016, 2017 AND 2018

(In thousands of US dollars, except share and per share data, or otherwise noted)

 

14.                               INCOME TAXES - continued

 

PRC - continued

 

As of March 31, 2018, the Group’s PRC subsidiaries, VIEs and VIEs’ subsidiaries had a tax loss carry-forward amounted to $111,189 and would expire on various dates between December 31, 2018 and December 31, 2023. The Group does not file combined or consolidated tax returns, therefore, losses from individual subsidiaries or the VIE entities may not be used to offset other subsidiaries’ or VIE entities’ earnings within the Group. Valuation allowance is considered on each individual subsidiary and legal entity basis. Valuation allowances have been established in respect of certain deferred tax assets as it is considered more likely than not that the relevant deferred tax assets will not be realized in the foreseeable future.

 

Reconciliation between the expense of income taxes computed by applying the PRC tax rate to income before income taxes and the actual provision for income taxes is as follows:

 

 

 

For the years ended March 31,

 

 

 

2016

 

2017

 

2018

 

 

 

 

 

 

 

 

 

Income before provision for income taxes and income/(loss) from equity method investments

 

$

24,058

 

$

357

 

$

(7,437

)

PRC statutory tax rate

 

25

%

25

%

25

%

Income tax at statutory tax rate

 

6,015

 

89

 

(1,859

)

Change in valuation allowance

 

(726

)

1,500

 

1,391

 

Expenses not deductible for tax purposes

 

1,565

 

3,162

 

2,298

 

Effect of income tax rate difference for entities under individual income tax rate of 35%

 

714

 

295

 

496

 

Effect of income tax rate differences in other jurisdictions

 

968

 

2,072

 

10,685

 

Tax holidays and preferential tax rates

 

(2,698

)

(3,764

)

(6,220

)

Income tax expenses

 

$

5,838

 

$

3,354

 

$

6,791

 

 

The Group did not identify significant unrecognized tax benefits for the years ended March 31, 2016, 2017 and 2018, respectively. The Group did not incur any interest and penalties related to potential underpaid income tax expenses and also believed that uncertainty in income taxes did not have a significant impact on the unrecognized tax benefits within next twelve months.

 

F-50



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