Notes to the consolidated financial statements
92
10 Income taxes
Income taxes on continuing operations
Effective income tax rate on continuing operations
,015
Ahold at a glance
Business review
Governance
Financials
Ahold
Annual Report 2015
The following table specifies the current and deferred tax components of income taxes on continuing operations in the income statement:
million
2015
2014
Current income taxes
Domestic taxes (the Netherlands)
(125)
(107)
Foreign taxes
United States
(165)
(95)
Europe - Other
(1)
(10)
Total current tax expense
(291)
(212)
Deferred income taxes
Domestic taxes (the Netherlands)
24
(4)
Foreign taxes
United States
50
(30)
Europe - Other
(7)
(2)
Total deferred tax expense
67
(36)
Total income taxes on continuing operations
(224)
(248)
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:
2015
2014
million
1,053
Income before income taxes
Income tax expense at statutory tax rate (263) 25.0% (254) 25.0%
Adjustments to arrive at effective income tax rate:
Rate differential (local rates versus the statutory rate of the Netherlands)
(26)
2.5%
(23)
2.3%
Deferred tax income (expense) related to recognition of deferred tax assets-net
29
(2.8)%
(6)
0.6%
Reserves, (non-) deductibles and discrete items
36
(3.4)%
35
(3.5)%
Total income taxes
(224)
21.3%
(248)
24.4%
"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.
