Notes tothe financial statements For the financial year ended 31 December 2023 18. Deferred tax (cont’d) Unrecognised temporary differences relating to unremitted foreign-sourced interest income In the prior year ended 31 December 2022, the Company did not recognised deferred tax liability of Rp35.4 billion in respect of gross unremitted foreign-sourced interest income of Rp569.3 billion as the Company has control over the remittance and this foreign-sourced interest income will be retained for future expansionary plans and capital injection in overseas markets and will not be remitted into Singapore in the foreseeable future. The potential deferred tax liabilities are before taking into account the foreign tax credit claim on the Indonesia withholding tax suffered by the Company on the interest income (if applicable). During the year ended 31 December 2023, foreign-sourced interest income was remitted into Singapore for the Company to fully settle its’ loans and borrowings. The Company recognized an income tax expense of Rp39.8 billion as this foreign interest income remitted into Singapore is subjected to Singapore income tax. Following this, the Company has fully recognised the deferred tax liability of Rp27.6 billion on its’ remaining gross unremitted foreign-sourced interest income of Rp481.0 billion as the Company intends to remit this foreign-sourced interest income in the foreseeable future for the Company’s funding requirements. 19. Investment in subsidiary companies Company 2023 2022 Rp million Rp million Shares, at cost 10,707,410 10,706,846 Investment in a newly incorporated subsidiary – 564 Carrying value of investment 10,707,410 10,707,410 The Group held less than 50% effective shareholdings in certain subsidiaries but owned, directly and indirectly, more than half of the voting power in these subsidiaries. In the prior year, on 22 September 2022, IFAR Trading Pte. Ltd. (formerly known as Indofood Agri Trading Pte. Ltd.) was incorporated with share capital of S$50,000 (equivalent to Rp564 million). The share issued was fully subscribed by the Company. Accordingly, IFAR Trading Pte. Ltd. became a wholly-owned subsidiary of the Company. 114 GROUP OVERVIEW OPERATION AND FINANCIAL REVIEW SUSTAINABILITY & GOVERNANCE FINANCIALS OTHER INFORMATION Indofood Agri Resources Ltd
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