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, which varies depending on the municipality in which the company is located.
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Tax Rates in Germany |
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% |
2010 |
2009 | ||
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Weighted average trade income tax rate |
12.2 |
12.4 | ||
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Corporation tax rate |
15.0 |
15.0 | ||
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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. €570.2 million (2009: €563.4 million) is available for distribution.
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€ million |
2010 |
2009 | ||||
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Current taxes |
-220.3 |
-101.5 | ||||
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Deferred taxes |
-15.0 |
23.7 | ||||
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Income taxes |
-235.3 |
-77.8 | ||||
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Derivation of the effective tax rate |
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Income before taxes |
732.3 |
3.3 | ||||
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Income tax rate for Wacker Chemie AG (%) |
28.5 |
28.5 | ||||
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Expected tax expenses |
-208.7 |
-0.9 | ||||
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Tax rate divergences |
-11.8 |
2.1 | ||||
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Tax effect of non-deductible expenses |
-3.3 |
-2.5 | ||||
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Tax effect of tax-free income |
7.2 |
7.4 | ||||
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Taxes relating to other periods (current earnings) |
-19.3 |
1.0 | ||||
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Changes in the valuation allowances for deferred tax assets1 |
-9.5 |
-47.1 | ||||
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Group equity result |
-11.0 |
-36.2 | ||||
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Income tax change recognized directly in equity; tax accounts |
13.7 |
– | ||||
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Other divergences |
7.4 |
-1.6 | ||||
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Total income tax |
-235.3 |
-77.8 | ||||
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Effective tax rate (%) |
32.1 |
> 100 | ||||
Income taxes include current tax expenses of €13.2 million for prior years. These expenses are offset by deferred tax income of €11.6 million from other periods.
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Allocation of Deferred Taxes |
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€ million |
2010 |
2009 | ||||||
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Deferred |
Deferred |
Deferred |
Deferred | ||||
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Intangible assets |
14.5 |
– |
12.5 |
– | ||||
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Property, plant and equipment |
3.9 |
105.2 |
8.7 |
90.0 | ||||
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Financial assets |
– |
0.2 |
– |
4.6 | ||||
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Current assets |
10.2 |
11.2 |
5.8 |
4.5 | ||||
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Provisions for pensions |
17.9 |
1.3 |
18.8 |
1.1 | ||||
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Other provisions |
41.1 |
6.2 |
33.8 |
0.3 | ||||
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Liabilities |
12.8 |
0.1 |
14.1 |
0.1 | ||||
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Loss carryforwards |
1.3 |
– |
2.5 |
– | ||||
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Setting off for companies with profit and loss transfer agreement |
-4.3 |
-4.3 |
-15.8 |
-15.8 | ||||
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97.4 |
119.9 |
80.4 |
84.8 | ||||
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Setoffs |
-83.9 |
-83.9 |
-71.2 |
-71.2 | ||||
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Statement of financial position item |
13.5 |
36.0 |
9.2 |
13.6 | ||||
The change in deferred tax assets and liabilities has been recognized in profit or loss with €-15.0 million (2009: €23.7 million), whereas €-4.4 million (2009:
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€ million |
2010 |
2009 | ||
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Within 1 year |
1.9 |
0.8 | ||
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Within 2 years |
5.8 |
0.5 | ||
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Within 3 years |
15.2 |
0.9 | ||
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Within 4 years |
17.7 |
0.1 | ||
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Within 5 years or later |
58.7 |
46.5 | ||
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99.3 |
48.8 | ||
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Of which loss carryforwards not expected to be realizable |
-94.2 |
-38.3 | ||
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Of which loss carryforwards expected to be realizable |
5.1 |
10.5 |