28. Finance costs 2023 2022 R’m R’m Interest expense - other 1 3 Notional interest expense on lease liabilities 3 4 Total finance costs 4 7 29. Tax 2023 2022 Restated* R’m R’m Current income tax 332 293 – Current year tax 331 290 – Prior years (over-provision) / under-provision 1 3 Dividend withholding tax - Individual policyholder fund 95 111 427 404 Deferred tax 109 (297) Total tax 536 107 Tax on the Group’s profit before tax differs from the theoretical amount that would arise using the tax rate applicable to South African/Namibian companies as follows: Profit before tax 5 121 666 Tax calculated at domestic tax rates applicable to profits in South Africa/Namibia 1 383 186 Tax effect of income not subject to tax (2 169) (1 476) Tax effect of non-deductible expenses 1 225 1 279 Tax effect of tax rate on Dividend Withholding Tax on deemed dividends being different to tax rate on the individual policyholder fund (“IPF”) 95 111 Prior years under-provision / (over-provision) 2 4 Tax effect of CF tax rate being different to IPF tax rate – 3 Total tax per Statement of Profit or Loss and Other Comprehensive Income 536 107 Group Dividend withholding tax is payable on dividends received in the individual policy fund. * The Group is presenting a restated 31 December 2022 deferred tax to reflect the initial application of IFRS 17 for Short Term insurance. The Group has accumulated losses of R387.2 million (2022: R370.6 million) available in certain subsidiaries for offset against future taxable income in those subsidiaries. The applicable tax rate was 27% (2022: 28%) for South African companies and 32% (2022: 32%) for Professional Provident Society Insurance Company (Namibia) Limited. Professional Provident Society Insurance Company Limited has five separate tax funds: the individual policyholders’ fund (taxed at 30%), the Company policyholders’ fund (taxed at 27%), the untaxed policyholder's fund (not taxed), the risk-policy fund (taxed at 27%) and the corporate fund (taxed at 27%). The tax reconciliation is done on total tax on all funds. The Professional Provident Society Holdings Trust is taxed at 45%. Deferred tax is raised at 27% for the Corporate Fund. Group NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) for the year ended 31 December 2023 191 Notes to the Consolidated Financial Statements
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