13. Income tax expense 107 Recognised in the income statement In millions of EUR 2009 2008 Current tax expense Current year 360 352 Under/(over) provided in prior years 8 (25) 368 327 Deferred tax expense Origination and reversal of temporary differences (84) 1 Previously unrecognised deductible temporary differences - (1) Changes in tax rate - (2) Utilisation/fbenefit) of tax losses recognised 10 (78) Under/(over) provided in prior years (8) 1 (82) (79) T< tal income tax expense in the income statement 286 248 Reconciliation of the effective tax rate In millions of EUR 2009 2008 Profit before income tax 1,428 595 S are of net profit of associates and joint ventures and impairments thereof (127) 102 P ofit before income tax excluding share of profit of associates and joint vi ntures (inclusive impairments thereof) 1,301 697 2009 2008 Ir ome tax using the Company's domestic tax rate 25.5 332 25.5 178 E ect of tax rates in foreign jurisdictions 1.6 21 2.3 16 E ect of non-deductible expenses 2.8 36 16.9 118 E ect of tax incentives and exempt income (8.2) (107) (9.2) (64) R cognition of previously unrecognised temporary differences (o.i) (1) (0.1) (1) I lisation or recognition of previously unrecognised tax losses (0.5) (7) (0.3) (2) I recognised current year tax losses 0.9 12 3.3 23 E ect of changes in tax rate - - (0.3) (2) V thholding taxes 1.2 16 1.9 13 I der/(over) provided in prior years - - (3.4) (24) C ler reconciling items (1.2) (16) (1.0) (7) 22.0 286 35.6 248 1 e effective tax rate of the Company improved significantly in 2009. The rate dropped from 35.6 per cent to 2 0 per cent. In 2008 the tax effect relating to the EUR275 million impairment on the goodwill of Russia was i luded, as non-deductible expenses, whilst in 2009 the book gain on the purchase of the Globe Bonds (see te 12 and 25) is included, as exempt income. I ome tax recognised in other comprehensive income llions of EUR Note 2009 2008 anges in fair value 2 4 anges in hedging reserve (4) 57 18 (2) 61 Annual Report 2009 - Heineken N.V.

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2009 | | pagina 103