88
Notes to the Consolidated Financial Statements (continued)
13. Income tax expense
Recognised in profit or loss
Reconciliation of the effective tax rate
-
Report of the
Report of the
Financial
Sustainability
Other
Introduction
Executive Board
Supervisory Board
Statements
Review
Information
Heineken N.V. Annual Report 2017
In millionsof€
2017
2016
Current tax expense
Current year
815
807
Under/(over) provided in prior years
(16)
(11)
799
796
Deferred tax expense
Origination and reversal of temporary differences, tax losses and tax credits
(12)
(45)
De-recognition/(recognition) of deferred tax assets
11
(90)
Effect of changes in tax rates
(45)
2
Under/(over) provided in prior years
2
10
(44)
(123)
Total income tax expense in profit or loss
755
673
In millionsof€
2017
2016
Profit before income tax
2,908
2,412
Share of net profit of associates and joint ventures and impairments thereof
(75)
(150)
Profit before income tax excluding share of profit of associates
and joint ventures (including impairments thereof)
2,833
2,262
2017
2016
Income tax using the Company's domestic tax rate
25.0
708
25.0
565
Effect of tax rates in foreign jurisdictions
0.6
17
(0.4)
(9)
Effect of non-deductible expenses
2.6
75
2.9
67
Effect of tax incentives and exempt income
(3.4)
(98)
(2.8)
(64)
De-recognition/(recognition) of deferred tax assets
0.4
11
(4.0)
(90)
Effect of unrecognised current year losses
1.7
49
6.8
154
Effect of changes in tax rates
(1.6)
(45)
0.1
2
Withholding taxes
2.3
65
3.1
70
Under/(over) provided in prioryears
(0.5)
(14)
(1)
Other reconciling items
(0.4)
(13)
(1.0)
(21)
26.7
755
29.7
673
The effective tax rate 201 7 is impacted by one-off benefits in several jurisdictions, including the remeasurement of deferred tax positions following
a nominal tax rate change in the United States. The effective tax rate 2016 included the impact of impairments for which no tax benefit could
be recognised.
For the income tax impact on items recognised in other comprehensive income, please refer to note 24.
