Note 19 – Income tax

Group Parent Company
SEK m 2017 2016 2017 2016
Current tax for the year -93 -72 -22 0
Current tax attributable to previous years -1 0 1
Deferred tax attributable to previous years 0 0
Deferred tax -11 -35 -18 -35
Tax on income for the year -106 -107 -39 -35

Deferred tax in the income statement consists of the following items:

Group Parent Company
SEK m 2017 2016 2017 2016
Deferred tax, internal profit on inventories 3 0
Deferred tax, untaxed reserves -2 -4
Deferred tax, appraised loss carry-forwards -18 -36 -18 -36
Deferred tax, other 5 4 0 1
Total deferred tax -11 -35 -18 -35

 

The tax attributable to components in other comprehensive income amounts to SEK 10 m (2016: SEK -8 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 2017 2016 2017 2016
Reported income before tax 439 441 323 214
Tax according to applicable tax rate -104 -108 -71 -47
Tax effect of non-deductible expenses -4 -3 -1 -23
Tax effect of non-taxable income 3 4 31 35
Tax income/expenses due to changed tax rate 0 0
Adjustments relating to previous years -1 0 1
Tax on income for the year in accordance with the income statement -106 -107 -39 -35

Tax rate

The weighted average tax rate in the Group amounted to 23.6% (2016: 24.5%). The Parent Company’s applicable income tax rate is 22% (2016: 22%).

Temporary differences

Temporary differences arise in those cases where the accounting and tax values of assets or liabilities differ. Changes are in deferred tax assets and liabilities during the year, without consideration given to set-offs made under the same tax entitlement.

Deferred tax assets

SEK m, Group Loss
carry-forwards
Internal
profit
Pensions Structural expenses Other* Total
At 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 assets 0 0
Exchange rate differences -2 2 0
At December 31, 2016 19 0 29 5 11 65
Reported in income statement  -18 3 0 9 -6
Effect of changed tax rates reported in the income statement  – 0
Reported in other comprehensive income  – -10 -10
Acquired tax assets  – 0
Exchange rate differences  0 0 0
At December 31, 2017 2 3 19 5 20 49
*”Other” relates, among other things, to deferred tax on bad debts and restructuring costs.

Deferred tax liabilities

SEK m, Group Untaxed reserves Intangible assets Other Total
At 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 difference 3 0 3
At December 31, 2016 36 70 20 126
Reported in income statement  2 -9 12 5
Effect of changed tax rates reported in the income statement  – 0
Acquired tax liability 7 7
Exchange rate difference  – 0 0
At December 31, 2017 38 68 32 138

Intangible assets refer to deferred tax on acquired customer relations. Other includes deferred tax on differences between the book and plan values 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 Other Total Other Financial instruments
At December 31, 2015 54 6 0 0 60 0 0
Reported in income statement -36 -1 2 -35
Transfer 0
Reported in other comprehensive income 0
Exchange rate differences 0 0
At December 31, 2016 18 4 2 0 24 0 0
Reported in income statement -18  –  -1  -19 0  –
Transfer 13 13 12
Reported in other comprehensive income  –  –  0  –
Exchange rate differences  0  –  –  0  –
At December 31, 2017 0 4 1 13 19 12 0

Other refers to deferred entitlement to deductions and payroll tax on direct pensions.

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 2017 2016 2017 2016
Deferred tax assets
Utilized after more than 12 months 37 30 18 0
Utilized within 12 months 12 35 1 24
Total 49 65 19 24
Deferred tax liabilities
Utilized after more than 12 months 126 96 12
Utilized within 12 months 12 30
Total 138 126 12 0

The net change regarding deferred taxes is as follows:

Group Parent Company
SEK m 2017 2016 2017 2016
Opening balance -61  -21 24 60
Reported in income statement -11 -35 -18 -35
Reported in other comprehensive income -10 8
Acquired tax liability -7 -9
Exchange rate differences 1 -3 0 0
Closing balance -89 -61 7 24