Notes to the consolidated financial statements 86 10 Income taxes Income taxes on continuing operations Effective income tax rate on continuing operations Ahold at a glance Business review Governance Financials Ahold Annual Report 2014 The following table specifies the current and deferred tax components of income taxes on continuing operations in the income statement: million 2014 2013 Current income taxes Domestic taxes (the Netherlands) (107) (103) Foreign taxes United States (95) (26) Europe - Other (10) 4 Total current tax expense (212) (125) Deferred income taxes Domestic taxes (the Netherlands) (4) (18) Foreign taxes United States (30) (18) Europe - Other (2) 8 Total deferred tax expense (36) (28) Total income taxes on continuing operations (248) (153) 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: 2014 2013 million 1,015 948 Income before income taxes Income tax expense at statutory tax rate (254) 25.0% (237) 25.0% Adjustments to arrive at effective income tax rate: Rate differential (local rates versus the statutory rate of the Netherlands) (23) 2.3% (38) 4.0% Deferred tax income (expense) related to recognition of deferred tax assets-net (6) 0.6% 40 (4.2)% Reserves, (non-) deductibles and discrete items 35 (3.5)% 82 (8.7)% Total income taxes (248) 24.4% (153) 16.1% "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.

Jaarverslagen | 2014 | | pagina 157