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 main impact of income not subject to tax is caused by the positive result recognized with respect to the joint venture with TotalEnergies which is not subject to tax under the provisions of the participation exemption (impact € -4.7 million). The impact of investments deductions and other non-taxable income amount to € -2.9 million.
Expenses not deductible for tax purposes include the effect of non-deductible costs in multiple jurisdictions (impact € 2.4 million).
The effect of the reversal of tax assets is mainly caused by the recognition of a previously unrecognized deferred tax asset which materialized as a result of the sale of a plot of land in the municipality of Breda. (impact € -9.3 million). Other effects are the write-off of tax credits which cannot be effectively utilized (impact € 1.7 million), and the release of the reversal of tax assets in other jurisdictions (impact € -0.5 million).
The impact of currency effects (€ 1.9 million) is caused by reporting entities which have a tax reporting currency which deviates from their functional currency.
The release of the tax provision relates to the finalization of a tax audit and the subsequent release of part of the provision which has been formed in respect thereof.
The change in tax rates in 2021 is caused by the increase of the Dutch corporate income rate from 25% to 25.8% as per 1 January 2022.
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 € -0.4 million).
The difference between the average tax rates 2021 (9.5%) and 2020 (16.6%) is mainly attributable to the effect in 2021 of the recognition of the previously unrecognized deferred tax asset which materialized as a result of the sale of the plot of land in Breda.
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