This item comprises income taxes paid or owed in the individual countries and deferred taxes. In Germany, alongside a corporate tax of 15.0 percent (15.0 percent a year earlier), there is a solidarity surcharge of 5.5 percent, after 5.5 percent a year earlier. Trade income tax of 12.2 percent (12.2 percent in the prior year) must also be paid. It varies depending on the municipality in which a company is located.

Deferred taxes of German companies are therefore measured based on a total tax rate (including solidarity surcharge) of 28.0 percent (28.0 percent a year earlier). The current taxes of foreign subsidiaries are determined according to domestic tax laws and rates valid in the country in which the respective company is based. As in the prior year, the respective income tax rates for foreign companies applicable in each country ranged from 10.0 percent to 39.0 percent.

Accrued income taxes on undistributed profits of subsidiaries were recognized only if distribution is planned. The amount of €425.0 million is available for distribution, compared with €323.5 million in the prior year.

Income taxes include current tax expenses from earlier years of €0.1 million, after €0.3 million in the prior year, and deferred tax income from earlier years of €17.1 million, after €0.0 million in the prior year.

Due to the utilization of previously unrecognized temporary differences and previously unrecognized tax losses from earlier periods, the actual income tax expense was reduced by €11.7 million, after €2.1 million in the prior year.

Allocation of Deferred Taxes

The changes in deferred tax assets and liabilities of €25.7 million were recognized as income in profit or loss (versus €37.3 million a year earlier), while €104.1 million (€ –49.9 million a year earlier) was recognized directly in equity. This mainly consists of deferred tax assets from variations in actuarial gains and losses resulting from pension provisions. Changes in the scope of consolidation resulted in deferred tax liabilities of €4.1 million that were recognized in equity. The existing tax loss carryforwards can be utilized as follows:

The loss carryforwards generated totaled €326.3 million, after €378.9 million in the previous year. Of this amount, €304.7 million (€360.4 million in the prior year) are expected to be non-realizable, which is why no deferred tax assets were recognized. If they had been recognized, however, they would have amounted to €85.3 million (€100.9 million in the prior year). Of the loss carryforwards that are not realizable for tax purposes, the amount of €169.7 million (€139.3 million in the prior year) is unlimited as to time and amount. As of December 31, 2016, no deferred tax assets were recognized for tax-deductible temporary differences of €668.9 million (€712.1 million the year before). The change mainly concerns parts of the actuarial losses from the measurement of pension obligations recognized in other equity items in equity and temporary differences in property, plant and equipment.