v3.24.4
Income taxes (Tables) - MiX Telematics Limited [Member]
 12 Months Ended
Mar. 31, 2024
Schedule of components of income before income tax expense

The following table presents domestic and foreign components of income before income tax expense (in thousands):

 

         
   As of March 31, 
   2023   2024 
Domestic (South Africa)  $14,781   $6,519 
Foreign   (1,814)   2,531 
Income before income tax expense  $12,967   $9,050 
Schedule of provision for income taxes expense

The following is a summary of the Company’s provision for income taxes for the years ended March 31, 2023 and 2024:

 

         
   As of March 31, 
   2023   2024 
Current tax          
Domestic (South Africa)  $(1,427)  $(2,270)
Foreign federal (1)   10    26 
Foreign state (2)   (962)   (836)
Total Current   (2,379)   (3,080)
Deferred tax          
Domestic (South Africa)   (5,448)   (2,489)
Foreign federal (1)   (18)   435 
Foreign state (2)   (600)   (1,331)
Total deferred   (6,066)   (3,385)
Total income tax expense  $(8,445)  $(6,465)

 

(1)U.S. Federal taxes
(2)U.S. and other foreign state taxes
Schedule of reconciliation of the income tax expense

The following table provides a reconciliation of the income tax expense calculated at the South African statutory tax rate, of 27% (2023 of 27%), to the income tax expense:

 

         
   As of March 31, 
   2023   2024 
Income before income tax expense  $12,967   $9,050 
Tax at South African statutory rate of 28%   —    — 
Tax at South African statutory rate of 27%   3,501    2,443 
Tax effect of:          
– Income not subject to tax   (38)   (107)
–Non-deductible expenses (1)   1,589    2,015 
–(Non-taxable)/Non-deductible foreign exchange movements (2)   3,408    769 
– Investment in subsidiaries   (127)   168 
– Withholding tax   91    162 
–Foreign tax paid (3)   322    281 
– Foreign tax rate differential   33    5 
–Valuation allowance (4)   (209)   946 
– (Over)/under-provision prior years   152    (97)
–Tax incentives in addition to cost incurred (5)   (355)   (344)
– Transfer pricing imputation   129    127 
–  Tax rate change   (174)   — 
– Imputation of controlled foreign company income   91    97 
– Other   32    — 
Income tax expense  $8,445   $6,465 

 

(1)These non-deductible expenses consist primarily of items of a capital nature and costs attributable to exempt income, primarily dividends from subsidiaries.
(2)The (non-taxable)/non-deductible foreign exchange movements arise as a result of the Company’s internal loan structures.
(3)The foreign tax paid relates primarily to withholding taxes on revenue earned in jurisdictions where the Company does not have a jurisdictional presence.
(4)The valuation allowance movement relates primarily to deferred taxation assets not recognized on tax losses.
(5)The tax incentives relate mainly to research and development allowances, as well as learnership allowances received in terms of the South African tax authorities. MiX Telematics International Proprietary Limited (“MiX International”), a subsidiary of the Company, is eligible for a 150% allowance for research and development spend in terms of section 11D of the South African Income Tax Act.
Schedule of net deferred tax liabilities

The Company’s net deferred tax liabilities consist of the following (in thousands):

 

         
   As of March 31, 
   2023   2024 
Deferred tax assets          
Deferred revenue  $1,175   $1,505 
Capital allowances for tax purposes   1,041    900 
Accruals   4,007    3,125 
Tax losses   2,220    2,190 
Stock based compensation   129    70 
Recurring commission liability   353    596 
Lease liabilities   441    374 
Other   19    20 
Gross deferred tax assets   9,385    8,780 
Set-off of deferred tax balances   (7,091)   (7,032)
Net deferred tax assets before valuation allowance   2,294    1,748 
Less valuation allowance   (204)   (655)
Net deferred tax assets  $2,090   $1,093 
           
Deferred tax liabilities          
Capital allowances for tax purposes  $5,548   $6,189 
Intangible assets   3,661    3,700 
Prepaid expenses   335    396 
Deferred foreign currency gains   8,077    8,560 
Investment in subsidiaries   401    549 
Deferred commissions   916    1,231 
Lease assets   505    596 
Other   5    15 
Gross deferred tax liabilities   19,448    21,236 
Set-off of deferred tax balances   (7,091)   (7,032)
Net deferred tax liabilities   12,357    14,204 
Net deferred tax liability  $(10,267)  $(13,111)
The gross movement in net deferred tax assets/(liabilities) is as follows:          
Opening balance  $(5,204)  $(10,267)
Foreign currency translation   1,507    569 
Other comprehensive income   (504)   (28)
Statement of Income charge   (6,066)   (3,385)
Closing balance  $(10,267)  $(13,111)
Schedule of corporate tax rates

Deferred tax at year-end has been recognized using the following corporate tax rates:

 

Region  2023   2024 
South Africa   27%   27%
Australia   30%   30%
Brazil   34%   34%
Mexico   30%   30%
Romania   16%   16%
Thailand   20%   20%
India   30%   30%
Uganda   30%   30%
United Arab Emirates   —%   9%
United Kingdom   25%   25%
United States of America   21%   21%