PC3. Income taxes
AP Accounting principles
Due to the links between accounting and taxation, the deferred tax liability on untaxed reserves is recognized in the company’s annual accounts as a component of untaxed reserves.
SEKm |
2018 |
2017 |
Deferred tax |
940 |
–816 |
Current tax |
– |
– |
IS Total |
940 |
–816 |
Explanation of tax expense
The difference between the recognized tax expense and expected tax expense is explained below. The expected tax expense is calculated based on profit before tax multiplied by the current tax rate.
|
2018 |
|
2017 |
||||
Reconciliation |
SEKm |
% |
|
SEKm |
% |
||
|
|||||||
IS Profit before tax |
17,102 |
|
|
1,680 |
|
||
IS Tax expense/income |
940 |
5.5 |
|
–816 |
–48.5 |
||
Expected tax |
3,763 |
22.0 |
|
370 |
22.0 |
||
Difference |
–2,823 |
–16.5 |
|
–1,186 |
–70.5 |
||
|
|
|
|
|
|
||
The difference is due to: |
|
|
|
|
|
||
Taxes related to prior periods |
0 |
0.0 |
|
–16 |
–0.9 |
||
Non-taxable dividends from subsidiaries |
–3,576 |
–20.9 |
|
–934 |
–55.6 |
||
Non-taxable Group contributions from subsidiaries1) |
– |
– |
|
–529 |
–31.5 |
||
Non-deductible Group contributions to subsidiaries1) |
713 |
4.2 |
|
13 |
0.8 |
||
Other non-taxable/non-deductible items |
30 |
0.2 |
|
280 |
16.7 |
||
Changed tax rate |
10 |
0.0 |
|
– |
– |
||
Total |
–2,823 |
–16.5 |
|
–1,186 |
–70.5 |
||
The Parent Company participates in the Group’s tax pooling arrangement and up until 2017, paid the majority of the Group’s total Swedish taxes. These were recognized in profit or loss as Group contributions paid and received. The net of paid and received Group contributions per subsidiary amounts to 22% and is the respective subsidiary’s share of the tax cost for the Group. As of 2018, another Swedish subsidiary is used to pay the majority of the Group’s total Swedish taxes.
SEKm |
2018 |
2017 |
Value, January 1 |
–4 |
– |
Current tax expense |
– |
– |
Paid tax |
0 |
–4 |
BS Value, December 31 |
–4 |
–4 |
SEKm |
2018 |
2017 |
Changes in temporary differences |
940 |
–800 |
Adjustments for prior periods |
0 |
–16 |
Total |
940 |
–816 |
SEKm |
Value, January 1 |
Deferred tax expense |
Value, December 31 |
Provisions for pensions |
–190 |
11 |
–179 |
Tax loss carryforwards |
–1,016 |
1,014 |
–2 |
Other |
160 |
–84 |
76 |
BS Total |
–1,046 |
941 |
–105 |
Appropriations and untaxed reserves
Accumulated depreciation in excess of plan totaling SEK 1m (1) is included in the Parent Company’s untaxed reserves.