Boskalis Annual Report 2020

104

This effective income tax rate is impacted by exceptional items. This analysis can be summarized as follows:

2019

2020

Income tax expense (-) /benefit

Income tax expense (-) /benefit

Income tax rate Profit / loss (-)

Income tax rate

Profit / loss (-)

Profit/Loss (-) before taxation Exceptional items (see Note 4)

95,040

- 20,141

21.2%

- 70,463 195,395 124,932

- 26,216

- 37.2%

- 82,258

6,472

7.9%

- 8,438

4.3%

Profit/Loss (-) before taxation, adjusted

12,782

- 13,669

106.9%

- 34,654

27.7%

The reconciliation between the Dutch nominal income tax rate and the effective income tax rate, based on the Profit/Loss (-) before taxation as stated above of EUR 124.9 million (2019: EUR 12.8 million), is as follows:

2019

2020

Income tax

amount Income tax rate

Income tax amount

Income tax rate

Effect on tax (rate): Nominal tax rate in the Netherlands

- 3,195

25.0%

- 31,233

25.0%

Tax exempted share in result of joint ventures and associates (excluding impairments) Tonnage tax, withholding tax, other special tax regimes Different statutory tax rates for other jurisdictions Unrecognized income tax losses and temporary differences

6,398

- 50.1%

3,673

- 2.9%

- 14,779

115.7%

-12,530

10.0% - 5.7%

45

- 0.4%

7,079

- 13,449 12,125

105,2% - 94.9%

- 15,325 15,443 - 1,761 - 34,654

12.3%

Prior year adjustments

- 12.4%

Other

- 814

6.4%

1.4%

- 13,669

106.9%

27.7%

Adjusted effective tax (rate)

ANNUAL REPORT 2020 – BOSKALIS FINANCIAL STATEMENTS 2020 ANNUAL REPORT 20 -- BOSKALIS FINANCIAL S ATEMENTS 20

The effective income tax rate adjusted for exceptional items was 27.7% (2019: 106.9%).

As can be derived from the tables above the effective tax rate, in comparison with previous year, is influenced by impairment charges and other exceptional items. The tax burden results from the distribution of the result over a mix of countries and entities and is higher than the nominal income tax rate in the Netherlands (25%) due to the fact that in a number of countries in which we currently operate a relatively high tax rate applies and countries where no tax asset has been recognized on negative results. In a number of these countries, despite the negative results, withholding taxes are payable.