Current tax (prior-year adjustments)
Tax charge (income)
Reconciliation of result before taxes and tax charge
Result before taxes
Applicable tax charge at average statutory tax rate
Income not subject to tax
Expenses not deductible for tax purposes
Effect of the reversal of tax assets
Additions to/releases from tax provision
Changes in tax rates
Tax charge (income)
Average tax rate on operations
The average statutory tax rate is the average of the statutory tax rates in the countries where Corbion operates, weighted on the basis of the result before taxes in each of these countries. The difference between these rates for 2020 (23.6%) and 2019 (14.1%) is caused by the 2019 impairment related to Brazil as this is a high-tax country (34% corporate tax rate).
The remeasurement of the sales price of the subsidiary Total Corbion PLA (Thailand) Limited to the joint venture Total Corbion PLA bv as well as the positive result on the joint venture with Total resulted in income which is not subject to tax under the provisions of the participation exemption (impact € -4.7 million).
Expenses not deductible for tax purposes include negative results of participations which are non-deductible under the participation exemption (impact € 0.7 million) as well as the effect of non-deductible costs in multiple jurisdictions (impact € 0.8 million).
The impact of currency effects (€ -5.1 million) is caused by reporting entities which have a tax reporting currency which deviates from their functional currency.
The addition to the tax provision relates to an ongoing audit for which a provision has been recorded.
Other effects include adjustments in respect of current-year events and the impact of changes to relevant regulations, facts, or other factors compared to those used in establishing the current tax position or deferred tax balance in previous years (impact € -0.8 million).
The difference between the average tax rates 2020 (16.6%) and 2019 (42.3%) is mainly attributable to the impairment in Brazil in 2019, since no deferred tax asset was recognized for the resulting deductible temporary difference, resulting in a significant increase of the 2019 average tax rate.
The realization of deferred tax assets depends on the expected future profitability. Deferred tax assets are not recognized if it is not probable that a tax benefit can be realized.
Breakdown of the tax charge recognized in equity
Tax liability due to loan-related exchange rate differences
Tax liability due to hedge results of financial instruments
Tax charge (income) recognized in equity