BMW 2015 Annual Report Download - page 115

115 GROUP FINANCIAL STATEMENTS
in € million 2015 2014
Current tax expense 2,751 2,774
Deferred tax expense 77 116
Income taxes 2,828 2,890
in € million 2015 2014
Income from investments in subsidiaries and participations 1 3
thereof from subsidiaries: € – million (2014: € 2 million)
Impairment losses on investments in subsidiaries and participations – 25 – 153
Result on investments – 24 – 150
Losses and gains relating to financial instruments – 430 – 597
Sundry other financial result – 430 – 597
Other financial result – 454 – 747
16
15
Other financial result
Income taxes
Taxes on income comprise the following:
The result on investments for the year under report
includes impairment losses on other investments total-
ling € 25 million (2014: € 153 million). In the previous
year, this line item was influenced by an impairment
loss of € 152 million recognised on the investment in
SGL Carbon SE, Wiesbaden.
Current tax expense includes € 164 million (2014:
€ 275 million) relating to prior periods.
A deferred tax expense of € 52 million (2014: € 83 mil-
lion) is attributable to new temporary differences and
the reversal of temporary differences brought forward.
The tax expense was reduced by € 64 million (2014:
€ 27 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
€ 105 million (2014: € 49 million).
Deferred taxes are computed using enacted or planned
tax rates which are expected to apply in the relevant
The improvement in other financial result was primarily
attributable to the lower net negative impact arising on
currency derivatives.
national jurisdictions when the amounts are recovered.
A uniform corporation tax rate of 15.0 % plus solidarity
surcharge of 5.5 % applies in Germany, giving a tax rate
of
15.8 %, unchanged from the previous year. After taking
account of an average municipal trade tax multiplier rate
(Hebesatz) of 425.0 % (2014: 425.0 %), the municipal trade
tax rate for German entities is 14.9 % (2014: 14.9 %). The
overall income tax rate in Germany is therefore 30.7 %
(2014: 30.7 %). Deferred taxes for non-German entities
are calculated on the basis of the relevant country-spe-
cific tax rates and remained in a range of between 12.5 %
and 46.9 %. Changes in tax rates resulted in a deferred
tax expense of € 36 million (2014: € 22 million).
The actual tax expense for the financial year 2015 of
€ 2,828 million (2014: € 2,890 million) is € 4 million
(2014: € 217 million higher) lower than the expected tax
expense of € 2,832 million (2014: € 2,673 million) which
would theoretically arise if the tax rate of 30.7 %