Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 198

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 19
Chunk 198
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 are largely independent of those from other assets or groups
of assets. Where the carrying amount of an asset or cash- generating unit exceeds its recoverable amount, the asset is considered impaired
and is written down to its recoverable amount.

The impairment losses are recognized
in profit or loss.

A previously recognized impairment
loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since the last
impairment loss was recognized. If that is the case, the carrying amount of the asset is increased to its recoverable amount. That increase
cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized previously.
Such reversal is recognized in profit or loss. Impairment loss relating to goodwill cannot be reversed in future periods.

j)
Taxation

i.
Current income tax

Current income tax assets and liabilities
for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax
rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the end of the reporting period,
in the countries where the Group operates and generates taxable income.

F-18

Current income taxes are recognized
in profit or loss except to the extent that the tax relates to items recognized outside profit or loss, either in other comprehensive
income or directly in equity. Management periodically evaluates positions taken in the tax returns with respect to situations in which
applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Dividend withholding tax is currently
payable on dividends distributed to equity holders of the Group at a rate as determined by each country’s jurisdiction. This tax
is not attributable to the Company, but is collected by the Company and paid to the tax authorities on behalf of the shareholder.

On receipt of a dividend by a company
from an investment held in a tax jurisdiction outside that of the Company, any dividend withholding tax payable is recognized as part
of current tax.

ii.
Deferred tax

Deferred tax is provided using the
liability method on temporary differences at the end of the reporting period between the tax bases of assets and liabilities and their
carrying amounts for financial reporting purposes.

Deferred tax liabilities are recognized
for all temporary differences, except:

  When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability                                    

  In respect of taxable temporary differences associated with investments in subsidiaries and interests                                    

Deferred tax assets are recognized