Annual report 2014

26 Income tax expenses

EUR million 2014 2013
Current taxes 47 42
Deferred taxes 12 -7
  59 35

As in the previous year, the current taxes do not include any prior-period tax expenses.

Deferred tax assets on tax loss carryforwards in the amount of EUR 3 million were reversed to expenses in the financial year (previous year: expenses of EUR 3 million). Write-downs amounting to EUR 2 million on deferred tax assets (previous year: EUR 2 million) were offset by EUR 2 million in reversals of write-downs (previous year: EUR 3 million).

The following table shows a reconciliation between the reported and the expected tax expense:

EUR million 2014 2013
Profit before taxes 31 117
Expected effective income tax rate 30.7% 30.7%
Expected tax expense 10 36
Deviation due to varying foreign tax rates -2 -4
Tax portion for tax-exempt income -1 -9
Tax portion for non-deductible expenses 60 54
Non-recognition, write-downs and utilisation of tax loss carryforwards 13 8
Result from investments accounted for at equity -4 -29
Effect of non-tax-deductible goodwill impairments 2
Prior-period taxes -11 -19
Other tax effects -6 -4
Reported tax expense 59 35
Reported income tax rate 190.3% 29.9%

The expected effective income tax rate comprises corporate income tax, the solidarity surcharge and trade tax as pertinent for German corporations.