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14 Income tax expense
The major components of tax expenses are presented in the following table.
MEUR 2013 2012
Current tax expense 95 53
Adjustments recognized for current tax for prior periods -1 6
Change in deferred taxes -57 15
37 74
The difference between income taxes at the statutory tax rate in Finland and income taxes recognized in the consolidated income statement is reconciled in the following table.
MEUR 2013 2012
Profit before tax 561 233
Hypothetical income tax calculated at Finnish tax rate 24.5% (2012: 24.5%) -138 -57
Effect of different tax rates of foreign subsidiaries 8 6
Tax exempt income 53 4
Non-deductible expense -12 -19
Taxes for prior periods 1 -3
Net results of associated companies -2 -1
Tax losses without deferred tax asset -6 -1
Effect of change of Finnish corporate income tax rate 55 -
Tax losses for prior periods without deferred tax asset 1 -
Adjustment to deferred tax assets - -2
Adjustment to deferred tax liabilities - 2
Other 3 -3
Tax charge in the consolidated income statement -37 -74
The Group's effective income tax rate was 6.64% (2012: 31.91%). The effective tax rate is lower than the Finnish corporate income tax rate of 24.5%. The change of the Finnish corporate income tax rate from 24.5% into 20% from the beginning of 2014 had a material effect on the Group's income tax charge. This was mainly due to the write-down of the deferred tax liability recognized on depreciation difference. Furthermore, tax exempt income and differences in foreign tax rates decreased the effective tax rate.