17 Tax
Current income tax liabilities amount to €31.0 million (December 31, 2020: €3.9 million).
The average weighted annual tax rate equals 12.0% (December 2020: -2.2%) and is based on the domestic tax rate of 25% corrected for equity results for which participation exemption is applicable. The current income tax charge for the first half of 2021 amounted to a tax expense of €26.9 million. Per June 30, 2021 there were no unused tax losses (December 31, 2020: €0 million) and the unused tax credits amounted to €0 (December 31, 2020: €0).
June 30, 2021 | December 31, 2020 | ||
Profit/(loss) before taxation | 225,338 | -200,875 | |
Income taxes at statutory rate of 25% (2020: 25%) | -56,335 | 50,219 | |
Increase/decrease resulting from: | |||
ˑ | Settlement with local withholding taxes | 1,129 | 5,427 |
ˑ | Non-taxable income (participation exemption facility) | 29,944 | -59,799 |
ˑ | Tax adjustments to prior periods | -1,679 | -205 |
ˑ | Other | - | -33 |
Total income tax | -26,941 | -4,391 | |
Effective income tax rate | 12.0% | -2.2% |
June 30, 2021 | December 31, 2020 | |
Deferred tax assets | ||
Pension provision | 4,885 | 3,925 |
Actuarial gains and losses on defined benefit plans | 3,821 | 5,718 |
Tax depreciation fixed assets | 254 | 169 |
Operational leases | 43 | 35 |
Total deferred tax assets | 9,003 | 9,847 |
Deferred tax liabilities | ||
Fair value movements equity investments | -6,277 | -5,063 |
Total deferred tax liabilities | -6,277 | -5,063 |
Net balance | 2,726 | 4,784 |