JOTUN A/S
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Reconciliation of the effective rate of tax and the tax rate in Jotun A/S country of registration
The table below reconciles the reported income tax expense to the expected income tax expense according to Norwegian corporate
income tax rate of 23 per cent (2017: 24 per cent):
(NOK THOUSAND) 2018 2017
Profit before tax 894 086 1 276 898
Expected income taxes according to income tax rate 23 per cent in Norway 205 640 306 456
Exempted tax on dividends –225 772 –317 227
Tax on dividends and surplus in controlled foreign companies (CFC) 43 371 44 992
Non-deductible expenses and non taxable income* 36 603 77 157
Correction previous years and change in temporary differences 49 654 19 502
Taxation outside Norway less deductible in Norwegian Tax 57 708 66 997
Total income tax expense 167 204 197 877
Effective tax rate 19 % 15 %
*) Non-deductible expenses are primarily connected to write down of shares. See note 16 for further information.
Tax payable presented in the statement of financial position
(NOK THOUSAND) 2018 2017
Tax payable for the year 232 270 202 138
Net foreign tax paid –50 939 –60 735
Norwegian tax settlement for previous years –33 839 10 994
Withholding taxes receivable –63 178 –61 153
CFC tax receivable –22 886 –16 531
SkatteFUNN (R&D tax incentive scheme) receivable –9 000 -8 583
Total tax payable in Norway and abroad 52 429 66 130
Tax payable in Norway 45 660 59 869
Specification of deferred tax
Deferred tax liability consists of tax liabilities that are payable in the future. The table below lists the timing differences between tax
accounting and financial accounting.
(NOK THOUSAND) 2018 2017
Temporary differences
Non-current assets 3 757 79 001
Current assets –56 173 –14 729
Liabilities –561 021 –365 388
Net temporary differences –613 437 –301 115
Tax rate* 22 % 23 %
Deferred tax asset recognised in the statement of financial position 134 956 69 256
*) The Norwegian nominal statutory tax rate will be reduced from 23 per cent in 2018 to 22 per cent in 2019.