Mercedes 2013 Annual Report Download - page 205

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F | Consolidated Financial Statements | Notes to the Consolidated Financial Statements
9. Income taxes
Profit before income taxes is comprised as shown
in table  F.22.
Profit before income taxes in Germany includes the share
of profit/loss from investments accounted for using the equity
method if the shares of those companies are held by German
companies.
Table  F.23 shows the components of income taxes.
The current tax expense includes tax benefits at German
and foreign companies of €1,038 million (2012: €1,164 million)
recognized for prior periods.
The deferred tax expense is comprised of the components
in table  F.24.
For German companies, in 2013 and 2012, deferred taxes
were calculated using a federal corporate tax rate of 15%,
a solidarity tax surcharge of 5.5% on each year’s federal cor-
porate taxes, plus a trade tax of 14%. In total, the tax rate
applied for the calculation of German deferred taxes in both
years amounted to 29.825%. For non-German companies,
the deferred taxes at period-end were calculated using the tax
rates of the respective countries.
Table  F.25 includes a reconciliation of expected income
tax expense to actual income tax expense determined using
the applicable German combined statutory rate of 29.825%
(2012: 29.825%).
In 2013 and 2012, the Group released valuation allowances
on deferred tax assets of foreign subsidiaries. The resulting
tax benefits are included in the line item “Change of valuation
allowance on deferred tax assets”.
Profit before income taxes
2013 2012
In millions of euros
German companies 5,630 3,778
Non-German companies 4,509 4,338
10,139 8,116
F.22
Components of income taxes
2013 2012
In millions of euros
Current taxes
German companies 202 353
Non-German companies -1,007 -540
Deferred taxes
German companies -180 -514
Non-German companies -434 -585
-1,419 -1,286
F.23
Components of deferred tax expense
2013 2012
In millions of euros
Deferred taxes -614 -1,099
due to temporary differences -710 -2,894
due to tax loss carryforwards and tax credits 96 1,795
F.24
Reconciliation of expected income tax expense to actual income tax
2013 2012
In millions of euros
Expected income tax expense -3,024 -2,421
Foreign tax rate differential -51 -128
Trade tax rate differential 54 12
Tax law changes -10 -13
Change of valuation allowance
on deferred tax assets
143
283
Tax-free income and non-deductible expenses 1,546 1,002
Other -77 -21
Actual income tax expense -1,419 -1,286
F.25