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.