03 Income Taxes

The calculation is based on the current legal position in the individual countries regarding applicable or anticipated tax rates as of the realization date. These are generally based on the legal stipulations valid or adopted as of the statement of financial position date.

In Germany, a solidarity surcharge is added to corporation tax. Trade income tax must also be paid. This varies depending on the municipality in which the company is located.

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Tax Rates in Germany

 

 

 

 

%

 

2009

 

2008

 

 

 

 

 

Weighted average trade income tax rate

 

12.4

 

12.0

Corporation tax rate

 

15.0

 

15.0

Solidarity surcharge on corporation tax

 

5.5

 

5.5

The income from foreign Group companies is subject to taxation at the tax rates valid in the country where the respective company is located. No deferred taxes on undistributed profits of subsidiaries were recognized. It was decided not to determine the possible resulting tax effects as the time and expense involved was unreasonably high. €563.4 million (previous year: €596.2 million) is available for distribution.

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€ million

 

2009

 

2008

1

The changes in the valuation allowances for deferred tax assets includes valuation allowances for the impairment of fixed assets totaling €34.6 million.

2

In the previous year, the effect from the supplementary tax statements of financial position resulted from the acquisition of the remaining shares in the Wacker Polymer Systems partnerships.

 

 

 

 

 

Current taxes

 

-101.5

 

-200.3

Deferred taxes

 

23.7

 

-3.2

Income taxes

 

-77.8

 

-203.5

 

 

 

 

 

Derivation of the effective tax rate

 

 

 

 

Income before taxes

 

3.3

 

641.8

Income tax rate for Wacker Chemie AG (%)

 

28.5

 

28.5

 

 

 

 

 

Expected tax expenses

 

-0.9

 

-182.9

Tax rate divergences

 

2.1

 

-12.8

Tax effect of non-deductible expenses

 

-2.5

 

-2.3

Tax effect of tax-free income

 

7.4

 

8.8

Taxes relating to other periods (current earnings)

 

1.0

 

-10.2

Changes in the valuation allowances for deferred tax assets1

 

-47.1

 

-7.0

Effect of changes in tax legislation

 

 

-3.9

Group equity result

 

-36.2

 

-10.1

Effect from supplementary tax statements of financial position2

 

 

18.5

Other divergences

 

-1.6

 

-1.6

Total income tax

 

-77.8

 

-203.5

 

 

 

 

 

Effective tax rate (%)

 

 

31.7





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Allocation of Deferred Taxes

 

 

 

 

 

 

 

 

€ million

 

2009

 

2008

 

 

Deferred
tax
assets

 

Deferred
tax
liabilities

 

Deferred
tax
assets

 

Deferred
tax
liabilities

 

 

 

 

 

 

 

 

 

Intangible assets

 

12.5

 

 

14.4

 

Property, plant, and equipment

 

8.7

 

90.0

 

4.2

 

94.8

Financial assets

 

 

4.6

 

 

Current assets

 

5.8

 

4.5

 

9.7

 

13.6

Provisions for pensions

 

18.8

 

1.1

 

7.9

 

2.0

Other provisions

 

33.8

 

0.3

 

44.0

 

20.9

Liabilities

 

14.1

 

0.1

 

31.7

 

0.1

Loss carryforwards

 

2.5

 

 

0.1

 

Tax credits

 

 

 

0.2

 

1.1

Setting off for companies with profit and loss transfer agreement

 

-15.8

 

-15.8

 

 

 

 

80.4

 

84.8

 

112.2

 

132.5

 

 

 

 

 

 

 

 

 

Setoffs

 

-71.2

 

-71.2

 

-81.0

 

-81.0

 

 

 

 

 

 

 

 

 

Statement of financial position item

 

9.2

 

13.6

 

31.2

 

51.5

The change in deferred tax assets and liabilities has been recognized in profit or loss with €23.7 million (previous year: €-3.2 million) and charged or credited directly to equity with €– 7.8 million (previous year: €10.3 million). The existing tax loss carryforwards can still be used as follows:

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€ million

 

2009

 

2008

 

 

 

 

 

Within 1 year

 

0.8

 

0.9

Within 2 years

 

0.5

 

1.3

Within 3 years

 

0.9

 

2.4

Within 4 years

 

0.1

 

6.9

Within 5 years or later

 

46.5

 

15.9

 

 

48.8

 

27.4

 

 

 

 

 

Of which loss carryforwards not expected to be realizable

 

-38.3

 

-27.1

 

 

 

 

 

Of which loss carryforwards expected to be realizable

 

10.5

 

0.3