8.15.1
Income tax

The effective corporate income tax charge comprises the following:

  2019 2018 1) 2019 2018
  € x 1,000 € x 1,000 % %
Current taxes 16,226 16,357    
Deferred taxes -24,467 -660    
Taxes in income statement -8,241 15,697    
         
Taxes based on the weighted average applicable rate 12,790 16,404 25.0 30.0
Participation exemption 1,897 -323 3.7 -0.6
Exempted revaluation profit - -2,372 0.0 -4.3
Benefits from tax facilities -147 -31 -0.3 -0.1
Deferred tax assets not carried forward 861 670 1.7 1.2
Derecognition of deferred tax assets 186 462 0.4 0.8
Recognition of deferred tax assets -22,942 - -44.9 0.0
Previously unrecognized tax assets recouped - -75 0.0 -0.1
Adjustment of current taxes of prior years -658 145 -1.3 0.3
Adjustment of deferred taxes of prior years - -156 0.0 -0.3
Adjustment in tax rate -394 -32 -0.8 -0.1
Non-deductible amounts 166 1,005 0.3 1.8
Taxes in income statement -8,241 15,697 -16.1 28.7
1) Figures for 2018 have been restated due to the classification of discontinued operations (see note 6.16.1).

 

The effective tax rate consists of the reported tax charge for the current year, divided by the profit before taxes. The effective tax rate in 2019 amounted to -16.1% (2018: 28.7%). The calculated weighted average tax rate of 25.0% mainly declines to the effective tax rate of -16.1% due to the recognition of the deferred tax assets of € 21.4 million for the application of the Dutch liquidation loss facility regarding US business (-41.9%) and the Finnish business (-3.0%). The main offsetting effect comes from the participation exemption, which increases the effective tax rate (+3.7%) as it includes the cumulative translation loss on the net US$ investment (see note 6.16.1). See note 6.15.2 for more details on the recognition of the deferred tax assets.

Accounting policy

Income tax expense comprises current and deferred tax. It is recognized in profit or loss except to the extent that it relates to a business combination, or items recognized directly in equity or in other comprehensive income.

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to tax payable or receivable in respect of previous years. The amount of current tax payable or receivable is the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantively enacted at the reporting date. Current tax also includes any tax arising from dividends.

Current tax assets and liabilities are offset only if certain criteria are met.