Note 19 – Income tax
Group | Parent Company | |||
SEK m | 2016 | 2015 | 2016 | 2015 |
Current tax for the year | -72 | -81 | 0 | 0 |
Current tax attributable to previous years | 0 | 2 | – | 0 |
Deferred tax attributable to previous years | 0 | -3 | – | 0 |
Deferred tax | -35 | -32 | -35 | -27 |
Tax on net income for the year | -107 | -114 | -35 | -27 |
Of which discontinued operations | – | -1 | – | – |
Continuing operations | -107 | -113 | -35 | -27 |
Deferred tax in the income statement consists of the following items:
Group | Parent Company | |||
SEK m | 2016 | 2015 | 2016 | 2015 |
Deferred tax, internal profit on inventories | 0 | 1 | – | – |
Deferred tax, untaxed reserves | -4 | -5 | – | – |
Deferred tax, appraised loss carry-forwards | -36 | -29 | -36 | -27 |
Deferred tax, other | 4 | -2 | 1 | 0 |
Total deferred tax | -35 | -35 | -35 | -27 |
The tax attributable to components in other comprehensive income amounts to SEK -8 m (2015: SEK -4 m), most of which comprises tax on reappraisal of the net pension obligation.
Income tax on the Group’s income before tax differs from the theoretical amount which would have arisen upon use of a weighted average tax rate for income in the consolidated companies in accordance with the following:
Group | Parent Company | |||
SEK m | 2016 | 2015 | 2016 | 2015 |
Reported income before tax, continuing operations | 441 | 459 | 214 | 148 |
Tax according to applicable tax rate | -108 | -113 | -47 | -33 |
Tax effect of non-deductible expenses | -3 | -1 | -23 | -23 |
Tax effect of non-taxable income | 4 | 1 | 35 | 28 |
Effect of foreign tax rates | 0 | 0 | 0 | 0 |
Tax income/expenses due to changed tax rate | 0 | 0 | – | 0 |
Adjustments relating to previous years | 0 | -1 | – | 0 |
Tax on net income for the year in accordance with the income statement, continuing operations | -107 | -113 | -35 | -27 |
Tax rate
The weighted average tax rate in the Group amounted to 24.5% (2015: 24.6%). The Parent Company’s applicable income tax rate is 22% (2015: 22%).
Temporary differences
Temporary differences arise in those cases where the reported values and tax values of assets or liabilities differ. Changes are in deferred tax assets and liabilities during the year, without consideration being given to set-offs made under the same tax law.
Deferred tax assets
SEK, Group | Loss carry-forwards | Internal profit | Pensions | Structural expenses | Other* | Total | |||||||||||
Per December 31, 2014 | 86 | 0 | 25 | 11 | 16 | 139 | |||||||||||
Reported in income statement | -29 | 1 | – | -5 | -6 | -39 | |||||||||||
Effect of changed tax rates reported in the income statement | – | – | – | – | – | 0 | |||||||||||
Reported in other comprehensive income | – | – | -4 | – | – | -4 | |||||||||||
Exchange rate differences | 0 | – | – | – | 0 | 0 | |||||||||||
Per December 31, 2015 | 57 | 1 | 21 | 6 | 10 | 96 | |||||||||||
Reported in income statement | -36 | 0 | – | -1 | -1 | -38 | |||||||||||
Effect of changed tax rates reported in the income statement | – | – | – | – | – | 0 | |||||||||||
Reported in other comprehensive income | – | – | 8 | – | – | 8 | |||||||||||
Acquired tax asset | – | – | – | – | 0 | 0 | |||||||||||
Exchange rate differences | -2 | – | – | – | 2 | 0 | |||||||||||
Per December 31, 2016 | 19 | 0 | 29 | 5 | 11 | 65 | |||||||||||
As regards the valuation of loss carry-forwards, see Note 4.1. It is the management’s assessment that it will be possible to utilize the loss carry-forwards. |
Deferred tax liabilities
SEK m, Group | Untaxed reserves | Intangible assets | Other | Total |
Per December 31, 2014 | 27 | 76 | 19 | 122 |
Reported in income statement | 5 | -10 | 2 | -3 |
Effect of changed tax rates reported in the income statement | – | – | – | 0 |
Acquired tax liability | – | – | – | 0 |
Exchange rate differences | – | 0 | -1 | -1 |
Per December 31, 2015 | 32 | 66 | 19 | 117 |
Reported in income statement | 4 | -8 | 1 | -3 |
Effect of changed tax rates reported in the income statement | – | – | – | 0 |
Acquired tax liability | – | 9 | 0 | 9 |
Exchange rate differences | – | 3 | 0 | 3 |
Per December 31, 2016 | 36 | 70 | 20 | 126 |
“Intangible assets” refers to deferred tax on acquired customer relations. “Other” refers, among other thing, to deferred tax on differences between carrying amounts and value according to plan of fixed assets.
The deferred tax is valued in accordance with the applicable tax rate in each country.
Deferred tax assets | Deferred tax liabilities | |||||
SEK m, Parent Company | Loss carry-forwards* | Structural expenses | Financial instruments | Total | Financial instruments | |
Per December 31, 2014 | 82 | 6 | 0 | 87 | 0 | |
Reported in income statement | -27 | 0 | 0 | -27 | – | |
Reported in other comprehensive income | – | – | – | 0 | – | |
Exchange rate differences | 0 | – | – | 0 | – | |
Per December 31, 2015 | 54 | 6 | 0 | 60 | 0 | |
Reported in income statement | -36 | -1 | 2 | -35 | 0 | |
Reported in other comprehensive income | – | – | – | 0 | – | |
Exchange rate differences | 0 | – | 0 | – | ||
Per December 31, 2016 | 18 | 4 | 2 | 24 | 0 | |
*All loss carry-forwards in the Parent Company are perpetual. |
Deferred tax assets and liabilities are set off when there is a legal right of set-off for the relevant tax assets and liabilities and when deferred taxes relate to the same tax authority. No set-off has taken place.
Reporting of expiration dates:
Group | Parent Company | |||
SEK m | 2016 | 2015 | 2016 | 2015 |
Deferred tax assets | ||||
Utilized after more than 12 months | 30 | 65 | 0 | 30 |
Utilized within 12 months | 35 | 31 | 24 | 30 |
Total | 65 | 96 | 24 | 60 |
Deferred tax liabilities | ||||
Utilized after more than 12 months | 96 | 107 | – | – |
Utilized within 12 months | 30 | 10 | – | – |
Total | 126 | 117 | 0 | 0 |
The net change regarding deferred taxes is as follows:
Group | Parent Company | |||
SEK m | 2016 | 2015 | 2016 | 2015 |
Opening balance | -21 | 17 | 60 | 87 |
Reported in income statement | -35 | -36 | -35 | -27 |
Effect of changed tax rates reported in the income statement | – | – | – | – |
Reported in other comprehensive income | 8 | -4 | – | – |
Acquired tax liability | -9 | – | – | – |
Exchange rate differences | -3 | 1 | 0 | 0 |
Closing balance | -61 | -21 | 24 | 60 |