Boskalis_Annual Report_2017

92 ANNUAL REPORT 2017 – BOSKALIS FINANCIAL STATEMENTS 2017 ANNUAL REPORT 2017 -- BOSKALIS FINANCIAL STATEMENTS 2017 92 12. INCOME TAX EXPENSES CURRENT INCOME TAX EXPENSES Current year Profit/Loss (-) before taxation Impairment losses Profit/Loss (-) before taxation, adjusted Nominal tax rate in the Netherlands Different statutory taxes for other jurisdictions Weighted average tax rate Non-deductible expenses Prior year adjustments Effective income tax rate

The tax charge declined to EUR 21.7 million (2016: EUR 32.4 million). The effective tax rate was 12.6% (2016, adjusted for impairment charges: 11.1%) and 18.4% if adjusted for the net result from joint ventures and associates and the book profit on the Gardline transaction.

2017

2016

- 43,751 13,170 - 2,734 - 33,315

- 54,422 20,351

Adjustment in respect of current income tax regarding prior financial years Reclassification of deferred income taxes regarding prior financial years

-

- 34,071

DEFERRED INCOME TAX EXPENSES Origination and reversal of temporary differences

9,271 2,734 - 367

1,819

Reclassification of deferred income taxes regarding prior financial years

-

Movement of recognized tax losses carried forward

- 108 1,711

11,638

- 21,677

- 32,360

TAXATION IN THE CONSOLIDATED STATEMENT OF PROFIT OR LOSS

The operational activities of the Group are subject to various tax regimes with tax rates ranging from 0.0% to 48.0% (2016: 0.0% to 48.0%). These different tax rates, non-deductible expenses, treatment of tax losses, special taxation regimes, adjustments in respect of prior years and results not subject to taxation, result in an effective tax rate in the reporting period of 12.6% (2016: -6,1%). The effective tax rate is calculated as tax charge divided by profit/loss before taxation, as shown in the consolidated statement of profit or loss. The reconciliation between the Dutch nominal income tax rate and the effective income tax rate is as follows: 2017 2016

172,120

- 529,390 842,641 313,251

-

172,120

- 43,030

25.0%

- 78,313

25.0%

Tonnage tax, withholding tax, other special tax regimes

7,542 8,794

- 4.3% - 5.1% 15.6%

18,423

- 5.9% - 1.0% 18.1%

2,981

- 26,694

- 56,909

Increase (decrease) in tax rate resulting from: Unrecognized income tax losses and temporary differences Recognition of previously unrecognized tax losses Tax exempted share in results of joint ventures and associated companies (excl. impairments) Tax exempted revaluation results and book results

- 6,896

4.0%

- 7,886 3,461

2.5%

2,577

- 1.5%

- 1.1%

6,324 5,803

- 3.7% - 3.4%

4,191

- 1.3% - 6.5%

20,433 - 18,515 20,351 - 34,874

- 15,961 13,170 - 21,677

9.3%

5.9%

- 7.7% 12.6%

- 6.5% 11.1%

-

0.0%

Tax benefit on impairments of group companies

2,514

- 17.2%

- 21,677

12.6%

- 32,360

- 6.1%

Tax exempted revaluation results and book results relate to the Gardline transaction (see note 5.1). In 2016 these results mainly relate to the transfer of the European harbor towage activities into the Kotug Smit Towage joint venture, the revaluation of the share in VBMS prior to business combination and the result on the sale of SMIT Amandla Marine. 13. INCOME TAX RECEIVABLE AND PAYABLE The current income tax receivables and income tax payables relate to the tax positions of the respective Group companies and consist of financial years yet to be settled less withholding taxes or tax refunds.