Financial statements - Notes to the consolidated financial statements
Note 11
Effective income tax rate
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-
-
-
Ahold's effective tax rates in the consolidated statements of operations differ from the statutory income tax rates of the
Netherlands, which were 31.5% and 34.5% for 2005 and 2004, respectively. The following table reconciles the statutory
income tax rate of the Netherlands with the effective income tax rate as shown in the consolidated statements of operations:
2005 2004
EUR I I EUR I
Income (loss) before income taxes continuing operations
(243)
780
Income tax benefit (expense) at statutory tax rate
77
31.5%
(269)
34.5
Adjustments to arrive at effective income tax rate:
Rate differential (local statutory rates versus the statutory rate of the Netherlands)
20
8.1%
(2)
0.2%
Deferred tax saving (expense) due to changes in tax rates and the imposition
of new taxes
(4)
(1.5)%
Deferred tax saving (expense) related to (reversal of) impairment of deferred
tax assets
(24)
(9.9)%
79
(10.1)%
Group Support Office costs and financing
114
46.9%
28
(3.6)%
Share-based payments
(5)
(2.0)%
(6)
0.8%
Participation exemption and group relief provisions
42
17.3%
48
(6.1)%
Other
(15)
(6.0)%
(25)
3.1%
Total income taxes
205
84.4%
(147)
18.8%
Group Support Office costs and financing includes the result of Ahold's intercompany finance activities, which are carried out
from the treasury center in Geneva, Switzerland.
124
