Notes to the consolidated financial statements continued
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Report of the
Report of the
Financial
Other
Contents
Overview
Executive Board
Supervisory Board
statements
information
13. Income tax expense
Reconciliation of the effective tax rate
In millions of EUR 2014 2013
2,440
Share of net profit of associates and joint ventures and impairments thereof (148)
Profit before income tax excluding share of profit of associates
and joint ventures (including impairments thereof) 2,292 1,961
2014
2013
Income tax using the Company's domestic tax rate
25.0
573
25.0
490
Effect of tax rates in foreign jurisdictions
3.8
87
4.1
79
Effect of non-deductible expenses
2.7
61
4.6
90
Effect of tax incentives and exempt income
(4.0)
(93)
(8.3)
(162)
Recognition of previously unrecognised temporary differences
(0.2)
(5)
Utilisation or recognition of previously unrecognised tax losses
(0.1)
(3)
(0.6)
(11)
Unrecognised current year tax losses
0.7
17
1.3
26
Effect of changes in tax rate
0.4
10
(1.6)
(32)
Withholding taxes
2.6
60
2.1
42
Undercover) provided in prior years
0.3 8
(0.1)
(2)
Other reconciling items
0.7
17
31.9
732
26.5
520
The reported tax rate 2014 includes two substantial one-off items. The write-off of a deferred tax asset (EUR105 million) following an
agreement with tax authorities limiting its recoverability. In addition, non-recognised losses were offset against a non-current income tax
liability, acquired as part of a prior acquisition, leading to a tax benefit (EUR85 million). The reported rate 2013 included a one-off tax item
with a positive impact (EUR46 million) regarding the re-measurement of a deferred tax position following a tax rate change.
Income tax recognised in other comprehensive income
In millions of EUR
Note
2014
2013
Changes in fair value reserve
3
10
Changes in hedging reserve
11
(2)
Changes in translation reserve
108
(43)
Changes as a result of actuarial gains and losses
96
(66)
Other
(1)
24
218
(102)
90
Heineken N.V. Annual Report 2014
