PC4. 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 |
2019 |
2018 |
Deferred tax |
–27 |
940 |
Current tax |
0 |
– |
IS Total |
–27 |
940 |
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.
|
2019 |
|
2018 |
||||
Reconciliation |
SEKm |
% |
|
SEKm |
% |
||
|
|||||||
IS Profit before tax |
4,095 |
|
|
17,102 |
|
||
IS Tax expense/income |
–27 |
–0.7 |
|
940 |
5.5 |
||
Expected tax |
876 |
21.4 |
|
3,763 |
22.0 |
||
Difference |
–903 |
–22.1 |
|
–2,823 |
–16.5 |
||
|
|
|
|
|
|
||
The difference is due to: |
|
|
|
|
|
||
Taxes related to prior periods |
4 |
0.0 |
|
0 |
0.0 |
||
Non-taxable dividends from subsidiaries |
–865 |
–21.1 |
|
–3,576 |
–20.9 |
||
Non-taxable Group contributions from Group companies1) |
–174 |
–4.2 |
|
– |
– |
||
Non-deductible Group contributions from Group companies1) |
– |
– |
|
713 |
4.2 |
||
Non-deductible interest expenses |
129 |
3.1 |
|
– |
– |
||
Other non-taxable/non-deductible items |
3 |
0.1 |
|
30 |
0.2 |
||
Changed tax rate |
0 |
0.0 |
|
10 |
0.0 |
||
Total |
–903 |
–22.1 |
|
–2,823 |
–16.5 |
||
The Parent Company participates in the Group’s tax pooling arrangement. Group contributions paid were treated as a tax deductible expense and received Group contributions were treated as non-taxable revenue. The net of paid and received Group contributions amounts to 21.4% (22) and is the amount of the company’s tax cost for the Group. In addition, the Parent Company has received Group contributions from another Swedish Group company, part of which was accounted for as non-taxable income.
SEKm |
2019 |
2018 |
Value, January 1 |
–4 |
–4 |
Current tax expense |
0 |
– |
Paid tax |
–7 |
0 |
BS Value, December 31 |
–11 |
–4 |
SEKm |
2019 |
2018 |
Changes in temporary differences |
–31 |
940 |
Adjustments for prior periods |
4 |
0 |
Total |
–27 |
940 |
SEKm |
Value, January 1 |
Deferred tax expense |
Value, December 31 |
Provisions for pensions |
–179 |
0 |
–179 |
Tax loss carryforwards |
–2 |
2 |
0 |
Other |
76 |
–29 |
47 |
BS Total |
–105 |
–27 |
–132 |
Appropriations and untaxed reserves
Accumulated depreciation in excess of plan totaling SEK 4m (1) is included in the Parent Company’s untaxed reserves.