NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2025 32 PROFIT FOR THE YEAR (CONT’D) Group 2025 2024 $’000 $’000 The above finance income and finance costs (including amounts capitalised) include the following interest income and expenses in respect of assets and liabilities not at FVTPL: – total interest income on financial assets 91,291 96,537 – total finance costs on financial liabilities 495,629 563,923 During the year, net finance costs of the Group have been capitalised at rates ranging from 1.00% to 4.60% (2024: 1.00% to 8.00%) per annum, 3.80% to 4.60% (2024: 5.09% to 5.10%) per annum, and 2.00% to 4.60% (2024: 1.00% to 8.00%) per annum for development properties, property, plant and equipment, and investment properties, respectively. 33 TAX EXPENSE Group Note 2025 2024 $’000 $’000 Current tax expense Current year – Corporate income tax 136,718 97,576 – Global minimum top-up tax 297 749 Over provision in respect of prior years (15,347) (5,810) 121,668 92,515 Deferred tax (credit)/expense Movements in temporary differences (11,961) 33,462 Effect of changes in tax rates and legislation 1,416 22,198 Over provision in respect of prior years (6,634) (13,545) 29 (17,179) 42,115 Land appreciation tax 6,131 17,885 Withholding tax 25,253 9,546 Total tax expense 135,873 162,061 Effects of changes in tax rates and legislation for 2024 was largely attributable to a change in New Zealand tax legislation which removed the ability to claim tax depreciation on commercial buildings, that came into effect in 2024. The Group has provided a one-off deferred tax liability adjustment of approximately $20.8 million (NZ$25.8 million) in relation to its hotels and other property portfolio located in New Zealand. ANNUAL REPORT 2025 | 183
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