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fifillslE3
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10 Income taxes (continued)
Our strategy
Our performance
Governan
Financials
Investors
Ahold Annual Report 2013
Effective income tax rate on continuing operations
Ahold's effective tax rate in its consolidated income statement differed from the Netherlands' statutory income tax rate of 25.0%. The following table reconciles the statutory income tax rate with
the effective income tax rate in the consolidated income statement:
2012
2013
(restated)1
million
million
Income before income taxes
948
1,128
Income tax expense at statutory tax rate
(237)
25.0%
(282)
25.0%
Adjustments to arrive at effective income tax rate:
Rate differential (local rates versus the statutory rate of the Netherlands)
(38)
4.0%
(32)
2.8%
Deferred tax income related to recognition of deferred tax assets-net
40
(4.2)%
5
(0.4)%
Reserves, (non-) deductibles and discrete items
82
(8.7)%
42
(3.7)%
Total income taxes
(153)
16.1%
(267)
23.7%
1 See Note 3 for an explanation of the restatements.
"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 transactions. During 2013, a tax benefit of €37 million was recognized from movements in income tax contingency reserves.
