Notes to the consolidated financial statements continued
13. Income tax expense
Recognised in the income statement
In millions of EUR
2012
2011
Current tax expense
Current year
639
502
Undercover) provided in prior years
(6)
(26)
633
476
Deferred tax expense
Origination and reversal of temporary differences
(90)
17
Previously unrecognised deductible temporary differences
(28)
(9)
Changes in tax rate
4
1
Utilisation/(benefit) of tax losses recognised
(6)
(19)
Undercover) provided in prior years
12
(1)
(108)
(11)
Total income tax expense in the income statement
525
465
Reconciliation of the effective tax rate
2012
Profit before income tax
3,634
2,025
Share of net profit of associates and joint ventures and impairments thereof
(213)
(240)
Profit before income tax excluding share of profit of associates and
joint ventures (including impairments thereof)
3,421
1,785
2012
Income tax using the Company's domestic tax rate
25.0
855
25.0
446
Effect of tax rates in foreign jurisdictions
1.8
63
3.5
62
Effect of non-deductible expenses
1.9
64
3.2
58
Effect of tax incentives and exempt income
(13.8)
(472)
(6.0)
(107)
Recognition of previously unrecognised temporary differences
(0.8)
(28)
(0.5)
(9)
Utilisation or recognition of previously unrecognised tax losses
(0.5)
(17)
(0.3)
(5)
Unrecognised current year tax losses
0.7
25
1.0
18
Effect of changes in tax rate
0.1
4
0.1
1
Withholding taxes
0.8
27
1.5
26
Undercover) provided in prior years
0.2
6
(1.5)
(27)
Other reconciling items
(0.1)
(2)
0.1
2
15.3
525
26.1
465
The lower reported tax rate in 2012 of 15.3 per cent (2011:26.1 per cent) can be explained by the tax exempt remeasurement of HEINEKEN's PHEI
in APIPL/APB, prior to consolidation.
Income tax recognised in other comprehensive income
Note
2012
Changes in fair value
(24)
-
Changes in hedging reserve
(18)
13
Changes in translation reserve
(22)
11
Other
123
16
24
59
40
102
Heineken N.V. Annual Report 2012
