12. Income tax expense
Recognised in the income statement
In millions of EUR
2006
2005
Current tax expense
Current year
439
326
Over provided in prior years
(26)
(14)
413
312
Deferred tax expense
Change in previously unrecognised temporary differences
(55)
Origination and reversal of temporary differences
(6)
(12)
Change in tax rate
10
(6)
Charge of tax losses recognised
3
6
(48)
(12)
Tc al income tax expense in income statement
365
300
Re conciliation of effective tax rate
Pr afit before income tax
1,710
1,169
Nt t gain on sale of subsidiaries, joint ventures and associates
(18)
(5)
In ome from associates
(27)
(29)
Di idend income
(13)
(13)
In aairment other investments
-
6
Ti able profit
1,652
1,128
0/
/o
2006
2005
In ome tax using the Company's domestic tax rate
29.6
489
31.5
354
Ef act of tax rates in foreign jurisdictions
(3.0)
(50)
(2.5)
(29)
Ef act of non-deductible expenses
2.4
40
2.6
30
Ef act of tax incentives and exempted income
(3.2)
(53)
(4.0)
(45)
CI ange in previously unrecognised temporary differences
(3.3)
(55)
Ef act of recognition of previously unrecognised tax losses
(0.3)
(4)
(0.1)
(1)
0 rent-year losses for which no deferred tax asset was recognised
0.4
7
0.6
7
Ei act of change in tax rates
0.6
10
(0.6)
(6)
(C er)/under provided in prior years
(1.6)
(26)
(1.2)
(14)
0 er reconciling items
0.4
7
0.3
4
22.0
365
26.6
300
D erred tax (debit)/credit recognised directly in equity
i IlionsofEUR
2006
2005
R( ating to accounting policy changes
-
(12)
R< ating to fair value adjustments and cash flow hedges
(14)
31
(14)
19
Heineken N.V.
Annual Report 2006