Income tax
Income tax on the result from continuing operations is as follows:
x € 1 million | 2021 | 2020 |
|---|---|---|
Current tax expense | 21 | 11 |
Current tax income prior years | -1 | - |
Current tax expense and tax income for current year | 20 | 11 |
Release of deferred taxation due to a change in corporate income tax rates | 3 | 11 |
Movements in deferred taxes | -11 | 8 |
-1 | - | |
Income taxes | 11 | 30 |
The current tax income and expense on the result from continuing operations is as follows:
x € 1 million | 2021 | 2020 |
|---|---|---|
Profit before income tax | 32 | 72 |
Participation exemption | -1 | 1 |
Non tax-deductible expenses | 6 | 1 |
Different depreciation methods for tax purposes | 45 | -30 |
Taxable amount | 82 | 44 |
Nominal tax rate | 25% | 25% |
Current tax expense | 21 | 11 |
The effective tax burden expressed as a percentage of the profit before income tax from continuing operations is as follows:
2021 | 2020 | |
|---|---|---|
Nominal tax rate | 25.0% | 25.0% |
Effect of: | ||
- Participation exemption | -0.8% | 0.4% |
- Non tax-deductible expenses | 4.7% | 0.4% |
- Change in corporate income tax rates | 9.4% | 15.4% |
- Corporate income tax for prior years | -3.1% | 0.2% |
- Other | -0.5% | -0.2% |
Effective tax rate | 34.7% | 41.2% |
The difference of the effective tax rate compared with the nominal tax rate is largely attributable to two factors. For 2021, a larger portion of the costs is non deductible compared with 2020, which leads to a higher tax burden. Secondly, an additional tax expense arises because the existing tax liability will be settled at a higher rate in the future owing to the change in the corporate income tax rate.
The corporate income tax is settled between Stedin Holding N.V. and its subsidiaries as if the subsidiaries were independently liable to tax.
