Boskalis_Annual_Report_2016

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12. INCOME TAX EXPENSES
The tax charge declined to EUR 32.4 million (2015: EUR 87.5 million). The effective tax rate, adjusted for impairment
charges, was 11.1% (2015: 16.0%) and 17.0%, if adjusted for the net result from joint ventures and associates, the
book profit on the KOTUG SMIT transaction, the book profit from the revaluation to fair value of our existing 50%
share in VBMS and the book profit on the sale of SMIT Amandla Marine.
2016 2015
CURRENT INCOME TAX EXPENSES
Current year - 54,422 - 89,565
Over / under(-) provision regarding prior financial years 20,351 5,566
Reclassification of deferred income taxes regarding prior financial years - 1,830
- 34,071 - 82,169
DEFERRED INCOME TAX EXPENSES
Origination and reversal of temporary differences 1,819 - 3,685
Reclassification of deferred income taxes regarding prior financial years - - 1,830
Movement of recognized tax losses carried forward - 108 232
1,711 - 5,283
TAXATION IN THE CONSOLIDATED STATEMENT OF PROFIT OR LOSS - 32,360 - 87,452
The operational activities of the Group are subject to various tax regimes with tax rates ranging from 0.0%
to 48.0% (2015: 0.0% to 40.5%). These different tax rates, non-deductible expenses, treatment of tax
losses, special taxation regimes, adjustments in respect of prior years and results not subject to taxation,
result in an effective tax rate in the reporting period of -6.1% (2015: 16.5%). The effective tax rate is
calculated as tax charge divided by profit/loss before taxation, as shown in the consolidated statement of
profit or loss. The reconciliation between the Dutch nominal income tax rate and the effective income tax
rate is as follows:
2016 2015
Profit/Loss (-) before taxation - 529,390 530,982
Impairment losses 842,641 14,533
Profit/Loss (-) before taxation, adjusted 313,251 545,515
Nominal tax rate in the Netherlands - 78,313 25.0% - 136,379 25.0%
Tonnage tax, withholding tax, other special tax
regimes 18,423 - 5.9% 36,931 - 6.8%
Different statutory taxes for other jurisdictions 2,981 - 1.0% 20,645 - 3.8%
Weighted average tax rate - 56,909 18.1% - 78,803 14.4%
Increase (decrease) in tax rate resulting from:
Unrecognized income tax losses and temporary
differences - 7,886 2.5% - 10,959 2.0%
Recognition of previously unrecognized tax losses 3,461 - 1.1% 4,594 - 0.8%
Tax exempted share in results of joint ventures and
associated companies (excl. impairments) 4,191 - 1.3% 9,177 - 1.7%
Tax exempted revaluation results and book results 20,433 - 6.5% - 87 0.0%
Non-deductible expenses - 18,515 5.9% - 16,941 3.1%
Prior year adjustments 20,351 - 6.5% 5,566 - 1.0%
- 34,874 11.1% - 87,452 16.0%
Tax benefit on impairments of group companies 2,514 - 17.2% - 0.5%
Effective income tax rate - 32,360 - 6.1% - 87,452 16.5%
Tax exempted revaluation results and book results mainly relate to the transfer of the European harbor
towage activities into the KOTUG SMIT Towage joint venture , the revaluation of the share in
VBMS prior to business combination and the result on the sale of SMIT Amandla Marine
. In 2015 this related to the revaluation gain and impairment loss regarding the Group’s
investment in Fugro N.V.
13. INCOME TAX RECEIVABLE AND PAYABLE
The current income tax receivables and income tax payables relate to the tax positions of the respective
Group companies and consist of financial years yet to be settled less withholding taxes or tax refunds.
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ANNUAL REPORT 2016 – BOSKALIS
FINANCIAL STATEMENTS 2016