95
13. Income tax expenses
Recognised in the income statement
In millions of EUR 2007 2006
Current tax expense
Current year
408
439
Over provided in prior years
(30)
(26)
378
413
Deferred tax expense
Change in previously unrecognised temporary differences
(1)
(55)
Origination and reversal of temporary differences
37
(6)
Change in tax rate
4
10
(Benefit)/charge of tax losses recognised
(7)
3
Under/(over)provided in prior years
18
51
(48)
Total income tax expenses in the income statement
429
365
R conciliation of effective tax rate
In millions of EUR
2007
2006
Profit before income tax
1,401
1,710
Net gain on sale of subsidiaries, joint ventures and associates
(3)
(18)
Income from associates
(25)
(27)
Dividend income
(16)
(13)
xable profit
1,357
1,652
2007
2006
Income tax using the Company's domestic tax rate
25.5
346
29.6
489
E fect of tax rates in foreign jurisdictions
1.3
18
(3.0)
(50)
E feet of non-deductible expenses
6.6
89
2.4
40
Effect of tax incentives and exempt income
(2.7)
(36)
(3.2)
(53)
C: ange in previously unrecognised temporary differences
(0.1)
(2)
(3.3)
(55)
E' act of recognition of previously unrecognised tax losses
(0.1)
(2)
(0.3)
(4)
Current year losses for which no deferred tax asset is recognised
1.1
15
0.4
7
E ect of change in tax rates
0.3
4
0.6
10
I ler/(over) provided in prior years
(0.9)
(12)
(1.6)
(26)
0 her reconciling items
0.7
9
0.4
7
31.7
429
22.0
365
2007 the tax effect related to the fine of the European Commission of €219 million has been included
i non-deductible expenses.
Ii 2006 within various countries it was agreed with the tax authorities to fiscally amortise goodwill.
1 is benefit was capitalised in 2006 and explains the decrease in change in previously unrecognised
riporary differences.
i ferred tax (debit)/credit recognised directly in equity
llions of EUR Note 2007 2006
dating to changes in fair value recognised directly in equity
18
(5)
(14)
(5)
(14)
Heineken N.V. Annual Report 2007