Notes to the Consolidated Financial Statements (continued)
12 Tax
12.1 Income tax expense
-
-
-
-
O O Qs
Introduction Report of the Executive Board Report of the Supervisory Board
Recognised in profit or loss
In millions of
2019
2018*
Current tax expense
Current year
896
809
Under/(over) provided in prior years
27
(24)
923
785
Deferred tax expense
Origination and reversal of temporary differences, tax losses and tax credits
30
(29)
De-recognition/(recognition) of deferred tax assets
(33)
Effect of changes in tax rates
(1)
(3)
Under/(over) provided in prior years
(9)
(12)
(13)
(44)
Total income tax expense in profit or loss
910
741
*Restated for IAS 37. Refer to note 4 for further details.
Reconciliation of the effective tax rate
In millions of
2019
2018*
Profit before income tax
3,284
2,846
Share of net profit of associates and joint ventures
(164)
(210)
Profit before income tax excluding share of profit
of associates and joint ventures
3,120
2,636
Restated for IAS 37. Refer to note 4 for further details.
Financial Statements
Sustainability Review
Heineken N.V. Annual Report 2019110
Other Information
2019
2018*
Income tax using the Company's domestic tax rate
25.0
780
25.0
659
Effect of tax rates in foreign jurisdictions
0.7
21
(0.1)
(3)
Effect of non-deductible expenses
3.2
100
2.3
62
Effect of tax incentives and exempt income
(3.8)
(119)
(3.2)
(84)
De-recognition/(recognition) of deferred tax assets
(1.1)
(33)
Effect of unrecognised current year losses
2.8
87
3.4
89
Effect of changes in tax rates
(1)
(0.1)
(3)
Withholding taxes
2.1
67
3.2
84
Under/(over) provided in prior years
0.6
18
(1.4)
(37)
Other reconciling items
(0.3)
(10)
(1.0)
(26)
29.2
910
28.1
741
Restated for IAS 37. Refer to note 4 for further details.
The higher effective tax rate in 2019 is mainly driven by the new interest deduction limitation rules in
the Netherlands.
For the income tax impact on items recognised in other comprehensive income, refer to note 12.3.
