b'< NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2019NOTE 7. INCOME TAX EXPENSE CONSOLIDATED2019 2018$ $ Income tax expenseCurrent tax3,611,734 3,661,667 Aggregate income tax expense3,611,734 3,661,667 Income tax expense is attributable to: Profit from continuing operations3,611,734 3,661,667 Aggregate income tax expense3,611,734 3,661,667 Numerical reconciliation of income tax expense and tax at the statutory rateProfit before income tax expense from continuing operations(190,161,004)(120,587,204)Profits tax using: Australian corporation tax at the statutory tax rate of 30% (2018: 30%)(57,048,301)(36,176,162) Tax effect of difference in overseas corporation tax at the statutory tax rate of 20% (2018: 20%)1,692,781 11,524,310 Tax effect amounts which are not deductible in calculating taxable income50,784,436 30,560,656 Losses not brought to account7,598,241 2,941,532 Tax exempt profits from Cambodian operations (Note (a))(1,998,176)(7,005,429)Obligation payments in Cambodia (Note (a))3,002,735 2,620,496 Adjustment for investment spending in Vietnam(419,982)(803,736)Income tax expense (Note (b))3,611,734 3,661,667 (a)Income tax in profit or loss As for non-gaming obligatory payment, it is considered Income tax includes obligation payments totallingas a composite of various other taxes such as salary tax, AUD3,002,735 (2018: AUD2,620,496) payable to thefringe benefit tax, withholding tax, value-added tax, Ministry of Economy and Finance of Cambodia (MOEF). patent tax, tax on rental of moveable and unmoveable assets, minimum tax, advance profit tax, advertising tax As at the date of this report, the Casino Law in respectand specific tax on entertainment services.of casino taxes in Cambodia is yet to be introduced. The MOEF levies an obligatory tax payment, payable on aMonthly payments for the obligatory payment are due on monthly basis. The obligatory tax payment is comprised the first week of the following month. DNA Star Vegas has of a fixed gaming tax and a fixed non-gaming tax payment.made the obligatory payment on timely manner.In addition, an annual casino licence fee of USD30,000 In the event of late payment within seven days from is paid. the due date, there will be a penalty of 2% on the late In respect of gaming activities, DNA Star Vegas Co., Ltdpayment and interest of 2% per month. In addition, after (DNA Star Vegas) has to pay the obligatory payment which15 days when official government notice is issued to DNA is a fixed gaming tax and with the payment of this fixedStar Vegas for the late payment and additional penalty of gaming tax, DNA Star Vegas will be exempted from all25% will be imposed. In the case where DNA Star Vegas categories of taxes on gaming activities including advancedoes not comply with the above-mentioned requirements, profits tax, minimum tax and advance tax on distributionthe MOEF will not issue the casino licences to DNA Star of dividends. Vegas in the successive years.DONACO INTERNATIONAL LIMITED 2019 ANNUAL REPORT 57'