Merck 2014 Annual Report Download - page 202

197CONSOLIDATED FINANCIAL STATEMENTS → Notes to the Group accounts
(32) INCOME TAX
€ million 2014 2013
Current taxes in the period – 592.4 – 496.9
Taxes for previous periods – 21.9 – 41.6
Deferred taxes in the period 222.1 359.0
– 392.2 – 179.5
The following table presents the tax reconciliation from theoretical
tax expense to tax expense according to the income statement.
The theoretical tax expense is determined by applying the statutory
tax rate of 30.7 % of a corporation headquartered in Darmstadt.
€ million 2014 2013
Profit before income tax 1,557.0 1,388.6
Tax rate 30.7 % 30.7 %
Theoretical tax expense – 478.0 – 426.3
Tax rate differences 100.8 109.7
Tax effect of companies with a negative contribution to consolidated profit –15.8 –14.6
Tax for other periods – 21.9 – 41.6
Tax credits 23.2 225.8
Tax effect on tax loss carryforwards 18.5 0.4
Tax effect of non-deductible expenses / tax-free income / Other tax effects –19.0 – 32.9
Tax expense according to income statement – 392.2 – 179.5
Tax ratio according to income statement 25.2 % 12.9 %
The tax expense consisted of corporation and trade taxes for the
companies domiciled in Germany as well as comparable income
taxes for foreign companies.
The higher tax credits in 2013 arose primarily in the United
States due to the consideration of dividend income from high-tax
countries.