Notes to the
consolidated
financial statements
continued
10 Income taxes
Overview
Business review
Governance
Financials
Investors
Ahold Delhaize Annual Report 2016
2015
(45)
(125)
17
24
Income before income taxes
(261)
(263)
25.0%
25.0%
Effective income tax rate on continuing operations
Ahold Delhaize’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:
Rate differential indicates the effect of Ahold Delhaize’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.
Income tax expense at statutory tax rate
Adjustments to arrive at effective income tax rate:
Rate differential (local rates versus the statutory rate of the Netherlands)
Deferred tax income (expense) related to recognition of deferred tax assets - net
Reserves, (non-)deductibles and discrete items
Total income taxes
Deferred income taxes
Domestic taxes (the Netherlands)
Foreign taxes
United States
Europe - Other
Total deferred tax expense
Total income taxes on continuing operations
(6)
7
13
(247)
(163)
(35)
(243)
(26)
29
36
(224)
2.5%
(2.8)%
(3.4)%
21.3%
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 2016
Current income taxes
Domestic taxes (the Netherlands)
Foreign taxes
United States
Europe - Other
Total current tax expense
(20)
(1)
(4)
(247)
2015
Tax rate
50
(7)
67
(224)
(165)
(1)
(291)
million
1,043
2016
Tax rate
million
1,053
0.6%
(0.7)%
(1.2)%
23.7%
