Annual report 2012

10. Income tax expense

Income tax expense recognised in the profit or loss

EUR thousand  2012 2011
Current tax expense 0 -17,472
Deferred tax income/expense -2,521 3,190
Income tax expense charged against profit or loss -2,521 -14,282


Reconciliation of actual and computed tax expense by taking into account the effective interest rate

EUR thousand  2012 2011
Profit/loss before tax under IFRS 51,460 35,615
Tax rate 18 % 20 %
Income tax using the domestic corporate tax rate -9,263 -7,123
Tax-free dividends 724 1,765
Tax incentives used in the current period 0 1,017
Change in the tax rate -5,375 -22
Non-deductible expenses 13,237 -9,926
Non-deductible expenses in previous period 16,911 23
Non-deductible expenses in the current year -3,674 -9,947
Other items -1,844 7
Total income tax expense -2,521 -14,282

In 2012, the effective tax rate was 4.90% (2011 adjusted: 10.10%). The low effective tax rate in the reporting period resulted from non-deductible expenses referring to impaired investments, which were disposed in 2012.

The tax rate changed from 20% to 18% in compliance with regulations on the corporate income tax. In addition, the amount of tax incentives relating to research and development activities increased from 40% to 100% but not exceeding the amount of the tax basis. Tax incentives relating to investments increased from 30% to 40% of the amount invested in a legally defined type of equipment and intangible assets without the upper limit of tax utilisation.

The general tax relief for investments shall be mutually exclusive with the relief for research and development.

As a result of the changed tax rate, the Company recognised lower deferred tax assets and charged them against profit or loss in the amount of EUR 5,375 thousand.


Change in deferred taxes recognised in income statement

EUR thousand  2012 2011
Property, plant and equipment -1,383 1,082
Investments 1,106 678
Provisions -1,786 740
Receivables and inventories -3,281 690
Other assets 2,823 0
Change in deferred tax assets/liabilities -2,521 3,190


Change in deferred tax assets/liabilities

EUR thousand  2012 2011
Change in revaluation reserves for property, plant and equipment 345 0
Change in fair value of available-for-sale investments -5 436
Change in deferred tax assets/liabilities 340 436