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28 Deferred income taxes
The movement in deferred tax assets and liabilities during 2013:
MEUR at 1 Jan
2013
Charged to
Income
Statement
Charged in
Equity
Exchange rate
differences and
other changes
Assets held
for sale
at 31 Dec
2013
Deferred tax assets
Tax loss carried forward 9 -5 - - - 4
Provisions 2 0 - - - 2
Pensions 1) 25 -4 -2 - - 19
Other temporary differences 10 -6 - - - 4
Total deferred tax assets 46 -15 -2 - - 29
Deferred tax liabilities
Depreciation difference and untaxed reserves 286 -50 - - - 236
Excess of book basis over tax basis of property, plant and equipment 21 -9 - - - 12
Finance leases 5 -1 - - - 4
Capitalized interest 17 -4 - - - 13
Other temporary differences 11 -8 -2 - - 1
Total deferred tax liabilities 340 -72 -2 - - 266
The movement in deferred tax assets and liabilities during 2012:
MEUR at 1 Jan
2012
Charged to
Income
Statement
Charged in
Equity
Exchange rate
differences and
other changes
Assets held
for sale
at 31 Dec
2012
Deferred tax assets
Tax loss carried forward 15 -6 - - - 9
Provisions 4 -1 - - -1 2
Pensions 1) 13 3 9 - - 25
Cash flow hedges 13 -3 -10 - - 0
Other temporary differences 7 5 - -1 -1 10
Total deferred tax assets 52 -2 -1 -1 -2 46
Deferred tax liabilities
Depreciation difference and untaxed reserves 282 4 - - - 286
Excess of book basis over tax basis of property, plant and equipment 19 2 - - - 21
Finance leases 5 0 - - - 5
Capitalized interest 18 -1 - - - 17
Other temporary differences 7 6 -2 - - 11
Total deferred tax liabilities 331 11 -2 - - 340
1) Restated
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income taxes relate to the same fiscal authority. Deferred tax assets and liabilities in the same jurisdictions amounting to EUR 2 million (2012: EUR 2 million) have been netted in the balance sheet.
Deferred tax assets 2013 2012
Deferred tax asset to be recovered after more than 12 months 22 28
Deferred tax asset to be recovered within 12 months 7 18
29 46
Deferred tax liabilities 2013 2012
Deferred tax liability to be recovered after more than 12 months 266 331
Deferred tax liability to be recovered within 12 months 0 9
266 340
Deferred tax assets are recognized for tax loss carry forwards to the extent that realization of the related tax benefit through the future taxable profits is probable.
The deferred tax liability on undistributed earnings of subsidiaries has not been recognized in the consolidated balance sheet because distribution of the earnings is controlled by the Group, and such distribution, which will realize a relevant tax effect, is not probable within foreseeable future.
The change of the Finnish corporate income tax rate from 24.5% into 20% as of the beginning of 2014 had a total effect of EUR 55 million on deferred tax assets and liabilities.