Boskalis Annual Report 2018

95

11. FINANCE INCOME AND EXPENSES

2018

2017

Interest income on short-term bank deposits

372 372

433 433

Finance income

Interest expenses Other expenses Finance expenses

- 11,813 - 1,840 - 13,653

- 11,424 - 1,934 - 13,358

Net finance expenses recognized in consolidated statement of profit or loss

- 13,281

- 12,925

Amortization relating to other interest-bearing borrowings amounts to EUR 0.5 million (2017: EUR 0.5 million) and commitment fees paid to EUR 0.9 million (2017: EUR 1.1 million). There are no fair value adjustments for interest-bearing borrowings (with regard to hedging instruments) in 2018 and 2017. 12. INCOME TAX EXPENSES The tax charge decreased to EUR 19.9 million (2017: EUR 21.7 million). The effective tax rate, adjusted for impairment charges, other extraordinary charges and for the net result from joint ventures and associates, was 26.8% (2017:15.4%).

2018

2017

CURRENT INCOME TAX EXPENSES Current year

- 38,486 17,507

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

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

-

- 20,979

DEFERRED INCOME TAX EXPENSES Origination and reversal of temporary differences

1,035

9,271 2,734 - 367

Reclassification of deferred income taxes regarding prior financial years

- -

Movement of recognized tax losses carried forward

1,035

11,638

- 19,944

- 21,677

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% (2017: 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 -4.8% (2017: 12.6%). The effective tax rate is calculated as the tax charge divided by profit/loss before taxation, as shown in the consolidated statement of profit or loss.

ANNUAL REPORT 2018 – BOSKALIS A L REP RT 2018 -- BOSKALIS