Arla Foods Consolidated Annual Report 2021
111
Arla Foods Consolidated Annual Report 2021 / Consolidated Financial Statements / Notes
Other areas
5.1 TAX
Contents
III
CURRENT AND DEFERRED TAX
Tax in the income statement
Tax costs increased to EUR 61 million compared to
EUR 34 million last year, primarily due to an increase in
deferred tax costs.
Current income tax
Cost related to current income taxes increased to
EUR 44 million compared to EUR 35 million last year,
mainly due to adjustments to current taxes of previous
years, partially offset by deferred tax movements from
previous years.
Deferred tax
Net deferred tax liabilities amounted to EUR 43 million,
representing an increase of EUR 8 million compared
to last year. Out of the net movements, EUR 17 million
impacted the income statement and EUR 9 million in
offsetting movements impacted the balance sheet.
The impact of changes in tax rates and laws is primarily
a result of the UK income tax rate change announced
and enacted in 2021.
Net deferred tax liabilities consisted of gross deferred
tax liabilities of EUR 64 million relating to temporary
differences on intangible assets, pension liabilities and
other items. These were offset by deferred tax assets of
EUR 21 million relating to property, plant and
equipment and tax losses carried forward.
Table 5.1.b Calculation of effective tax rate
(EURM)
2021
2020
%
EURM
%
EURM
Profit before tax
386
Tax applying the statutory Danish income tax rate
Effect of tax rates in other jurisdictions
Effect of companies subject to cooperative taxation
Tax-exempt income, less non-deductible expenses
Impact of changes in tax rates and laws
Adjustment for tax cost of previous years
Other adjustments
22.0
89
22.0
85
-2.0
-8
-1.8
-7
-4.9
-20
-8.8
-34
-1.5
-6
-0.5
-2
2.7
11
0.2
1
0.5
2
-0.5
-2
-1.8
-7
-1.8
-7
15.0
61
8.8
34
Total
Table 5.1.c Deferred tax assets and liabilities
(EURM)
Net deferred tax asset/(liability) at 1 January
2021
2020
Table 5.1.a Tax recognised in the income statement
(EURM)
Current income tax
2021
2020
Deferred tax recognised in the income statement
Deferred tax recognised in other comprehensive income
Impact of change in tax rates
3697
-35
-38
-6
2
4
-11
-1
Foreign currency translation adjustments
-2
Net deferred tax asset/(liability) at 31 December
-43
-35
Current income tax on net/profit for the year relating to:
Cooperative tax
10
9
Deferred tax, by gross temporary difference
Income tax
28
26
Intangible assets
-7
-9
Adjustment for current tax of previous years
6
Property, plant and equipment
29
22
Total current income tax costs
44
35
Provisions, pension liabilities and other assets
-33
-21
Tax losses carried forward
7
9
Deferred tax
Other
-39
-36
Change in deferred tax for the year
10
Total deferred tax, by gross temporary difference
-43
-35
Adjustment for deferred tax of previous years
Impact of changes in tax rates and laws
Total deferred tax costs/income
Total tax costs in the income statement
-4
-2
11
1
Recognised in the balance sheet as:
17
-1
Deferred tax assets
Deferred tax liabilities
61
34
Total
21
29
-64
-64
-43
-35View entire presentation