BMW 2013 Annual Report Download - page 116

116
88 GROUP FINANCIAL STATEMENTS
88 Income Statements
88 Statement of
Comprehensive Income
90 Balance Sheets
92 Cash Flow Statements
94 Group Statement of Changes in
Equity
96 Notes
96 Accounting Principles and
Policies
114 Notes to the Income Statement
121 Notes to the Statement
of Comprehensive Income
122
Notes to the Balance Sheet
145 Other Disclosures
161 Segment Information
in € million 2 013 2012*
Current tax expense 2,435 2,908
Deferred tax expense / income 138 – 216
Income taxes 2,573 2,692
in € million 2 013 2012
Income from investments in subsidiaries and participations 12 5
thereof from subsidiaries: € 8 million (2012: € 1 million)
Impairment losses on investments in subsidiaries and participations – 91 – 175
Expenses from investments in subsidiaries – 2 –
Result on investments – 81 – 170
Losses and gains relating to financial instruments – 125 – 422
Sundry other financial result – 125 – 422
Other financial result – 206 – 592
16
15
Other financial result
Income taxes
Taxes on income comprise the following:
The result from investments in 2013 was negatively
impacted by an impairment loss on other investments
amounting to € 73 million (2012: € 166 million).
Current tax expense includes € 222 million (2012: € 128 mil-
lion)
relating to prior periods.
A deferred tax expense of € 23 million (2012*: income of
€ 729 million) is attributable to new temporary differ-
ences and the reversal of temporary differences brought
forward.
As in the previous year, tax expense was reduced by
€ 5 million as a result of utilising tax losses / tax credits
brought forward, for which deferred assets had not
previously been recognised.
The change in the valuation allowance on deferred tax
assets relating to tax losses available for carryforward
and temporary differences resulted in a tax expense of
€ 7 million (2012: expense of € 3 million).
Deferred taxes are computed using enacted or planned
tax rates which are expected to apply in the relevant
national jurisdictions when the amounts are recovered.
A uniform corporation tax rate of 15.0 % plus solidarity
The improvement in other financial result was pri-
marily
attributable to fair value gains on interest rate
and commodity derivatives.
surcharge of 5.5 % applies in Germany, giving a tax rate
of 15.8 %. After taking account of an average municipal
trade tax multiplier rate (Hebesatz) of 420.0 %, the mu-
nicipal trade tax rate for German entities is 14.7 %.
The overall income tax rate in Germany is therefore
30.5 %. All of these German tax rates are unchanged
from the previous year. Deferred taxes for non-German
entities are calculated on the basis of the relevant coun-
try-specific tax rates and remained in a range of between
12.5 % and 46.9 % once again in the financial year 2013.
Changes in tax rates resulted in a deferred tax expense of
€ 2 million (2012: € 21 million).
The actual tax expense for the financial year 2013 of
€ 2,573 million (2012*: € 2,692 million) is € 160 million
(2012*: € 312 million) higher than the expected tax ex-
pense of € 2,413 million (2012*: € 2,380 million) which
would theoretically arise if the tax rate of 30.5 %, appli-
cable for German companies, was applied across the
Group.
* Prior year figures have been adjusted in accordance with the revised version of IAS 19,
see note 7.