Home
Menu Download Search
Annual Report 2016 Report by the Board of Directors Notes Proposed distribution of earnings Auditors' report Eleven-year review Review by business area

Note 10 Taxes

All amounts in SEKm unless otherwise stated

  Group Parent Company
  2016 2015 2016 2015
Current taxes –995 –1,252 –101 –53
Deferred taxes –93 719 –926 156
Taxes included in income for the period –1,088 –533 –1,027 103
Taxes related to OCI 24 –85 –1 –1
Taxes included in total comprehensive income –1,064 –618 –1,028 102

Deferred taxes in 2016 include an effect of SEK –28m (10) due to changes in tax rates. The consolidated accounts include deferred tax liabilities of SEK 87m (99) related to untaxed reserves in the Parent Company.

Theoretical and actual tax rates

% 2016 2015
Theoretical tax rate 28.4 28.9
Non-taxable/non-deductible income statement items, net –0.2 3.0
Non-recognized tax losses carried forward 0.7 7.3
Utilized non-recognized tax losses carried forward –1.8 –3.5
Deferred taxes –9.8 –17.3
Withholding tax 2.9 3.7
Other –0.7 3.3
Actual tax rate 19.5 25.4

The theoretical tax rate for the Group is calculated on the basis of the weighted total Group net sales per country, multiplied by the local statutory tax rates.

Non-recognized deductible temporary differences

As of December 31, 2016, the Group had tax loss carry-forwards and other deductible temporary differences of SEK 9 ,653m (10,868), which have not been included in computation of deferred tax assets. The decision not to recognize certain temporary differences is based on an assessment where the likelihood of future utilization is evaluated for each of the temporary items. The Group typically does not recognize temporary differences in situations where it is considered the ability to utilize these to be limited. The non-recognized deductible temporary differences will expire as follows:

  December 31, 2016
2017 126
2018 187
2019 229
2020 182
2021 15
2022– 3,162
Without time limit 5,752
Total 9,653

Changes in deferred tax assets and liabilities

The table below shows the movement in net deferred tax assets and liabilities.

Net deferred tax assets and liabilities

  Excess
of
depre-ciation
Provision
for
pen-
sion
Provision
for
restruc-
turing
Other
provi-
sions
Inven-tories Recog-
nized
unused
tax
losses
Accrued
expenses
and
prepaid
income
Other Total
deferred
tax
assets
and
liabilities
Set-off
tax
Net
deferred
tax
assets
and
liabilities
Opening balance, January 1, 2015 –221 1,280 573 1,077 –247 955 507 740 4,664 4,664
Recognized in total comprehensive income –53 –79 –74 172 8 225 72 334 605 605
Exchange-rate differences –21 28 –28 –49 –33 79 10 –11 –25 –25
Closing balance, December 31, 2015 –295 1,229 471 1,200 –272 1,259 589 1,063 5,244 5,244
Of which deferred tax assets 338 1,233 471 1,343 220 1,259 614 1,512 6,990 –1,101 5,889
Of which deferred tax liabilities –633 –4 –143 –492 –25 –449 –1,746 1,101 –645
                       
Opening balance, January 1, 2016 –295 1,229 471 1,200 –272 1,259 589 1,063 5,244 5,244
Recognized in total comprehensive income –204 137 –87 92 132 –291 4 168 –49 –49
Acquisitions of operations –4 –4 –4
Exchange-rate differences –16 57 14 153 –16 37 42 126 397   397
Closing balance, December 31, 2016 –515 1,423 398 1,445 –156 1,005 635 1,353 5,588 5,588
Of which deferred tax assets 223 1,448 398 1,595 297 1,005 645 1,757 7,368 –1,200 6,168
Of which deferred tax liabilities –738 –25 –150 –453 –10 –404 –1,780 1,200 –580

Other deferred tax assets include tax credits related to the production of energy-efficient appliances amounting to SEK 895m (499) and to foreign tax credits in US of SEK 248m (506).