8. Tax
 
  2018 
US$’000 		   2017 
US$’000 		  
Corporate income tax for the year        
   Cyprus  2 913     1 554    
   South Africa  3 002     2 596    
   5 915     4 150    
Special contribution for defence in Cyprus  5     4    
Deferred tax             
   Originating and reversal of temporary differences (note 13) 7 933     19 162    
Dividend withholding tax  158     –    
Tax charge  14 011     23 316    
Reconciliation between tax charge and accounting profit at applicable tax rates           
Profit before tax    64 983        90 989     
Notional tax on profit before taxation, calculated at the rates applicable in the jurisdictions concerned    10 181       23 165    
Non-taxable income             
Profits on revaluation of intergroup US$ denominated preference shares  –     (695)   
Gain on bargain purchase  (516)    –    
Intergroup dividends received  (4 300)    (2 423)   
Interest received  (13)    (6)   
Non-deductible expenses             
Losses on revaluation of intergroup US$ denominated preference shares  4 070     –    
Intergroup dividends paid  3 001     2 415    
Investment related  877     526    
Interest paid  10     51    
Capital expenses  161     170    
Other  472     73    
Recognition of deemed interest income for tax purposes  68     40    
Tax charge  14 011     23 316    

Tax is recognised on management’s best estimate of the weighted average annual income tax rate expected for the full financial year applied to the pre-tax income of the year.

Under certain conditions interest income may be subject to defence contribution at the rate of 30.0% in Cyprus. Such interest income is treated as non-taxable in the computation of corporation taxable income. In certain instances, dividends received from abroad may be subject to defence contribution at the rate of 17.0%.

The Group’s consolidated effective tax rate for the year ended 30 September 2018 was 21.6% (2017: 25.6%).

At 30 September 2018, the Group’s unredeemed capital balance available for offset against future mining taxable income in South Africa amounted to US$111.1 million (2017: US$99.6 million).

Special contribution for defence is provided in Cyprus on certain interest income at the rate of 30%. 100% of such interest income is treated as non-taxable in the computation of chargeable income for corporation tax purposes.

Other than Cyprus and South Africa, no provision for tax in other jurisdictions was made as these entities either sustained losses for taxation purposes or did not earn any assessable profits.