Annual Report 2025 175 Notes to the Financial Statements 31 December 2025 22. Finance Costs, Net Group 2025 $’000 2024 $’000 Finance income 2,607 2,924 Interest expense on loans and borrowings (241,468) (239,870) Cash flow hedges (cross currency swaps) (4,979) – Interest expenses on lease liabilities (Note 7) (27,393) (28,461) Amortisation of transaction costs (5,981) (5,497) Others (598) (361) Finance costs (280,419) (274,189) Finance costs, net (277,812) (271,265) 23. Tax Expense / (Credit) Group 2025 $’000 2024 $’000 Current tax expense - Current year 12,377 16,579 Deferred tax expense - Reversal of temporary differences (Note 15) 43,393 (34,440) Tax expense / (credit) 55,770 (17,861) Reconciliation of effective tax rate Group 2025 $’000 2024 $’000 Total return for the year before tax 835,486 746,246 Tax calculated using Singapore tax rate of 17% (2024 : 17%) 142,033 126,862 Effect of different tax rate in foreign jurisdictions 11,317 4,422 Non-tax deductible items, net 23,740 12,764 Income not subject to tax (45,522) (41,952) Tax on overseas profits yet to be remitted (Note 15) 18,568 (26,990) Tax transparency (94,366) (92,967) 55,770 (17,861) Global minimum tax under Pillar two The OECD’s Global Anti-Base Erosion (“GloBE”) rules under the global minimum top-up tax framework (“Pillar Two”) have been enacted or substantively enacted in certain jurisdictions in which the Group operates and are effective for financial years beginning on or after 1 January 2024. The Group has performed an assessment of its potential exposure to Pillar Two legislation. Based on the assessment, CLAR and all of its constituent entities qualify as Excluded Entities under the GloBE Rules. Accordingly, the Group is not expected to be subject to Pillar Two top-up tax. No current tax relating to the top-up tax was recognised for the financial years ended 31 December 2024 and 31 December 2025. While Pillar Two does not directly impact the Group by imposing additional taxes, the Group continues to monitor developments in Pillar Two legislation and guidance, including any indirect or administrative impacts that may arise.
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