ANNUAL REPORT 2021 slide image

ANNUAL REPORT 2021

LUNDBECK ANNUAL REPORT 2021 E CONTENTS CONSOLIDATED FINANCIAL STATEMENTS NOTE 5 5 INCOME TAXES - CONTINUED Explanation of the Group's effective tax rate DKKm % 2021 Profit before tax Calculated tax, 22% 2020 1,581 Profit before tax 348 22.0 Calculated tax, 22% Tax effect of: Tax effect of: Differences in the income tax rates of foreign subsidiaries from the Danish corporate income tax rate 33 2.1 Differences in the income tax rates of foreign subsidiaries from the Danish corporate income tax rate Non-deductible expenses/non-taxable income and other permanent differences 72 4.6 Non-deductible expenses/non-taxable income and other permanent differences Research and development incentives (76) (4.8) Research and development incentives Foreign-derived intangible income benefit (32) (2.0) Foreign-derived intangible income benefit Non-deductible amortization of product rights 16 1.0 Non-deductible writedown on intangible assets Change in valuation of net tax assets Change in deferred tax as a result of changed income tax rates Prior-year tax adjustments etc., total effect on operations Effective tax/tax rate for the year (82) (5.2) Non-deductible amortization of product rights (1) (0.1) Change in valuation of net tax assets (15) (1.0) Change in deferred tax as a result of changed income tax rates 263 16.6 Prior-year tax adjustments etc., total effect on operations Effective tax/tax rate for the year 61/111 DKKm % 1,906 419 22.0 20 1.0 59 3.1 (69) (3.6) (26) (1.4) 111 5.8 101 5.3 (286) (15.0) 36 1.9 (40) (2.1) 325 17.0
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