10 Income taxes
Ahold Annual Report 2012 95
Ahold at a glance
Our strategy
Our performance
Governance
Financials
Investors
Notes to the consolidated
financial statements
Income taxes on continuing operations
The following table specifies the current and deferred tax components of income taxes on continuing operations in the income statement:
million
2012
2011
Current income taxes
Domestic taxes (the Netherlands)
(76)
(111)
Foreign taxes
United States
(14)
42
Europe - Other
(22)
(11)
Total current tax expense
(112)
(80)
Deferred income taxes
Domestic taxes (the Netherlands)
(58)
(33)
Foreign taxes
United States
(39)
(37)
Europe - Other
(2)
10
Total deferred tax expense
(99)
(60)
Total income taxes on continuing operations
(211)
(140)
Effective income tax rate on continuing operations
Ahold's effective tax rate in the income statement differed from the statutory
effective income tax rate in the income statement:
income tax rate of the Netherlands of 25.0%. The following table reconciles
the statutory income
tax rate with the
2012
2011
million
million
Income before income taxes
960
1,031
Income tax expense at statutory tax rates (240) 25.0% (258) 25.0%
Adjustments to arrive at effective income tax rates:
Rate differential (local rates versus the statutory rate of the Netherlands)
(19)
2.0%
(47)
4.6%
Deferred tax income related to recognition of deferred tax assets-net
5
(0.5)%
21
(2.0)%
Reserves, (non-) deductibles and discrete items
43
(4.5)%
144
(14.0)%
Total income taxes
(211)
22.0%
(140)
13.6%
"Rate differential" indicates the effect of Ahold's taxable income being generated and taxed in jurisdictions where tax rates differ from the statutory tax rate in the Netherlands. "Reserves, (non-)
deductibles and discrete items" include one-time events.
During 2011, a tax benefit of €109 million was recognized, resulting from a release of an income tax contingency reserve related to financing transactions that occurred prior to 2004.
