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.