90 Notes to the Consolidated Financial Statements (continued) 13. Income tax expense Recognised in profit or loss Reconciliation of the effective tax rate - Heineken NV. Report of the Report of the Financial Sustainability Other Annual Report 2016 Introduction Executive Board Supervisory Board Statements Review Information In millions of EUR 2016 2015 Current tax expense Current year 807 799 Under/(over) provided in prior years (11) (3) 796 796 Deferred tax expense Origination and reversal of temporary differences, tax losses and tax credits (45) (83) Derecognition/(recognition) of deferred tax assets (90) (3) Effect of changes in tax rates 2 20 Under/(over) provided in prior years 10 (33) (123) (99) Total income tax expense in profit or loss 673 697 In millions of EUR 2016 2015 Profit before income tax 2,412 2,838 Share of net profit of associates and joint ventures and impairments thereof (150) (172) Profit before income tax excluding share of profit of associates and joint ventures (including impairments thereof) 2,262 2,666 2016 2015 Income tax using the Company's domestic tax rate 25.0 565 25.0 667 Effect of tax rates in foreign jurisdictions (0.4) (9) 2.1 57 Effect of non-deductible expenses 2.9 67 2.6 69 Effect of tax incentives and exempt income (2.8) (64) (7.6) (205) Derecognition/(recognition) (4.0) (90) (0.1) (2) Effect of unrecognised current year losses 6.8 154 2.1 56 Effect of changes in tax rates 0.1 2 0.8 20 Withholding taxes 3.1 70 1.9 50 Under/(over) provided in prior years (1) (1.4) (36) Other reconciling items (1.0) (21) 0.8 21 29.7 673 26.2 697 Revised for comparative purposes The effective tax rate 2016 includes the impact of impairments for which no tax benefit could be recognised. Partly offset by the recognition of previously unrecognised deferred tax assets. The effective tax rate 2015 included the gain on sale of EMPAQUE, which was tax exempt. For the income tax impact on items recognised directly in equity and in other comprehensive income, please refer to note 24.

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2016 | | pagina 91