101
08
HEINEKEN N.V. ANNUAL REPORT 2008
13. Income tax expense
Recognised in the income statement
In millions of EUR
2008
2007
Current tax expense
Current year
352
359
Under/(over) provided in prior years
(25)
(17)
327
342
Deferred tax expense
Origination and reversal of temporary differences
1
29
Previously unrecognised deductible temporary differences
(1)
(1)
Changes in tax rate
(2)
4
Ut lisation/(benefit) of tax losses recognised
(78)
(7)
Urider/(over) provided in prior years
1
27
(79)
52
Total income tax expense in the income statement
248
394
Rt conciliation of the effective tax rate
In illionsof EUR
2008
2007
Pr >fit before income tax
595
1,323
St ire of net profit of associates and joint ventures
ar i impairments thereof
102
(54)
Pr >fit before income tax excluding share of profit of associates
ar d joint ventures (inclusive impairments thereof)
697
1,269
A from 2008, the share of profit of associates and joint ventures and impairments thereof has been excluded
fr m the effective tax rate calculation. The dividend income from investments and gain of sale of subsidiaries
ai i associates have been included. The comparatives have been adjusted accordingly.
2008
2007
In ome tax using the Company's domestic tax rate
25.5 178
25.5
324
Ef act of tax rates in foreign jurisdictions
2.3 16
0.4
5
Ef act of non-deductible expenses
16.9 118
6.3
81
Ef act of tax incentives and exempt income
(9.2) (64)
(1.0)
(12)
R' ognition of previously unrecognised temporary differences
(0.1) (1)
(0.2)
(2)
U sation or recognition of previously unrecognised tax losses
(0.3) (2)
(0.2)
(3)
U ecognised current year tax losses
3.3 23
0.7
9
Ef act of changes in tax rate
(0.3) (2)
0.3
4
W hholding taxes
1.9 13
0.1
(1)
U der/(over) provided in prior years
(3.4) (24)
0.8
10
0 ier reconciling items
(1.0) (7)
(1.7)
(21)
35.6 248
31.0
394
'008 the tax effect relating to the €275 million impairment on the goodwill of Russia has been included in
i-deductible expenses. In 2007 the tax effect related to the fine of the European Union of €219 million has
an included in non-deductible expenses.
Ir ome tax relating to items (charged)/credited to equity
In lillionsof EUR
Note
2008
2007
anges in fair value
4
(5)
anges in hedging reserve
57
18
61
(5)