Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 199

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 19
Chunk 199
---
for all deductible temporary differences, the carry forward of unused tax credits and unused tax losses, to the extent that it is probable
that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits
and unused tax losses can be utilized, except:

  When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition                        

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

The carrying amount of deferred tax
assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable
profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are reassessed
at the end of each reporting period and are recognized to the extent that it has become probable that future taxable profit will allow
the deferred tax asset to be recovered.

Deferred tax assets and liabilities
are measured at the tax rates that are expected to apply to the year when the asset is realized or the liability is settled, based on
tax rates (and tax laws) that have been enacted or substantively enacted at the end of each reporting period.

Deferred tax relating to items recognized
outside profit or loss is recognized outside profit or loss. Deferred tax items are recognized in correlation to the underlying transaction
either in other comprehensive income or directly in equity.

The Group offsets deferred tax assets
and deferred tax liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities
and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same
taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realize
the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or
assets are expected to be settled or recovered.

F-19

iii.
Value added tax

Revenues, expenses and assets are recognized net of the
amount of value added tax except:

  Where the value added tax incurred on a purchase of assets or services is not recoverable from the taxation authority, in which case  

  Receivables and payables that are stated with the amount of value added tax included.  

The net amount of value added tax recoverable from, or payable
to, the taxation authority is included as part of receivables or payables in the statement of financial position.

k)