Arla Foods Annual Report 2020
Management Review
Our Strategy
Our Brands and Commercial Segments Our Responsibility Our Governance
Our Performance Review Our Consolidated Financial Statements Our Consolidated Environmental, Social and Governance Data
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5.1 TAX
اس
Current and deferred tax
Tax in the income statement
Tax costs increased to EUR 34 million compared to
EUR 24 million last year, primarily due to an increase
in current income tax costs.
Current income tax
Cost related to current income taxes increased to
EUR 35 million compared to EUR 28 million last year,
primarily due to higher profits. Prepaid current income
tax and payments related to current tax previous years
totalled EUR 28 million, which were similar to last year.
Deferred tax
Net deferred tax liabilities amounted to EUR 35 million,
which represents a decrease of EUR 3 million compared
to last year, of which EUR 1 million impacted the
income statement. 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 29 million relating to property, plant
and equipment and tax losses carried forward.
Table 5.1.b Calculation of effective tax rate
(EURM)
Profit before tax
Tax applying the statutory Danish corporate 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
Total
Table 5.1.c. Deferred tax
(EURM)
2020
2019
386
347
22.0%
85
22.0%
76
-1.8%
-7
-0.9%
-3
-8.8%
-34
-9.2%
-32
-0.5%
-2
-1.4%
-5
0.2%
1
0.0%
-0.5%
-2
0.9%
3
-1.8%
-7
-4.4%
-15
8.8%
34
6.9%
24
2020
2019
Net deferred tax asset/(liability) at 1 January
-38
Deferred tax recognised in income statement
Table 5.1.a Tax recognised in the income statement
(EURM)
2020
2019
Deferred tax recognised in other comprehensive income
Impact of change in tax rates
Exchange rate adjustments
Current income tax
Net deferred tax asset/(liability) at 31 December
GNPANY
-54
2
4
10
-2
2
-35
-38
Current income tax on result for the year relating to:
Cooperative tax
9
00
8
Deferred tax, by gross temporary difference
Corporate income tax
26
19
Intangible assets
-9
-8
Adjustment for current tax of previous years
1
Property, plant & equipment
22
25
Total current income tax costs
35
28
Provisions, pension liabilities and other assets
-21
-12
Tax losses carried forward
9
12
Deferred tax
Other
-36
-55
Change in deferred tax for the year
-6
Total deferred tax, by gross temporary difference
-35
-38
Adjustment for deferred tax of previous years
-2
2
Impact of changes in tax rates and laws
1
Recognised in the balance sheet as:
Total deferred tax costs/income
-1
-4
Deferred tax assets
Deferred tax liabilities
Total tax costs in the income statement
34
24
Total
29
43
-64
-81
-35
-38
112 ARLA FOODS ANNUAL REPORT 2020View entire presentation