28 JOTUN GROUP Note 6 continues INCOME TAX Consolidated statement of other comprehensive income Deferred tax related to items charged or credited directly to other comprehensive income during the year (NOK thousand) Net gain on translation difference on net investment in foreign operations 10 797 12 545 Net actuarial gain / (loss) 421 -3 559 Income tax charged directly to other comprehensive income 11 218 8 985 Reconciliation of Norwegian nominal statutory tax rate to effective tax rate A reconciliation between tax expense and the product of accounting profit multiplied by Jotun A/S’ domestic tax rate for the years ended 31 December 2014 and 2013 are as follows: Profit before tax as reported in consolidated statement of profit or loss 1 301 422 1 191 368 Share of profit from associated companies and joint ventures, net of tax -356 352 -286 961 Expected income taxes at statutory tax rate* 27 % 255 169 253 234 Effect of credit deduction 2 % 17 340 32 179 Correction previous years 0 % 13 191 -7 803 Non deductible expenses and non taxable income** 9 % 80 374 100 703 Tax loss not recognised 6 % 53 339 53 582 Foreign tax rate differences -6 % -63 676 -97 269 Total income tax 355 737 334 625 Effective tax rate 38 % 37 % *) Expected income tax is calculated based on profit before tax, less the net of tax amount share of profit from associated companies and joint ventures. The calculation is based on the Norwegian nominal statutory tax rate applied to income before tax. As of 2014 this tax rate is 27 per cent (2013: 28 per cent). **) The amounts include limitations in tax credits for foreign tax paid by Jotun A/S in Norway derived from low-tax jurisdictions and income taxable under the Controlled Foreign Corporation (CFC) rules. Current tax payable presented in the consolidated statement of financial position 2014 2014 2014 2014 Tax payable for the year 383 924 305 413 Prepaid taxes -166 134 -113 536 Withholding taxes receivable -66 967 -57 608 Other tax payable 8 574 -7 067 Total tax payable 159 397 127 202 Specification of deferred tax Deferred tax liability consists of the Group tax liabilities that are payable in the future. The table below lists the timing differences between tax accounting and financial accounting. 2014 (NOK thousand) (NOK thousand) Temporary differences (NOK thousand) 2013 2013 2013 2013 Non-current assets 212 434 335 284 Current assets -178 241 -42 375 Liabilities -277 208 -382 888 Tax losses carried forward -41 272 -52 942 Net temporary differences -284 286 -142 921 Net deferred tax presented in the consolidated statement of financial position Recognised deferred tax liabilities -32 194 -36 489 Recognised deferred tax assets 134 957 97 732
Jotun Annual Report 2014
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