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 |