Nokia 2010 Annual Report Download - page 230

12. Income taxes
2010 2009 2008
EURm EURm EURm
Income tax
Current tax ............................................. (798) (736) (1 514)
Deferred tax ............................................ 355 34 433
Total .................................................. (443) (702) (1 081)
Finland ................................................ (126) 76 (604)
Other countries ......................................... (317) (778) (477)
Total .................................................. (443) (702) (1 081)
The differences between income tax expense computed at statutory rate (in Finland 26%) and income
taxes recognized in the consolidated income statement is reconciled as follows at December 31, 2010:
2010 2009 2008
EURm EURm EURm
Income tax expense at statutory rate ................................. 464 250 1 292
Permanent differences ........................................... 4(96) (65)
Non tax deductible impairment of Nokia Siemens Networks’ goodwill
(1)
.... —236 —
Taxes for prior years ............................................. (48) (17) (128)
Taxes on foreign subsidiaries’ profits in excess of (lower than) income taxes
at statutory rates .............................................. (195) (145) (181)
Change in losses and temporary differences with no tax effect
(2)
.......... 221 577 —
Net increase (decrease) in tax contingencies .......................... 24 (186) 2
Change in income tax rates ....................................... 24 (22)
Deferred tax liability on undistributed earnings
(3)
...................... (31) 111 220
Other ......................................................... 2(32) (37)
Income tax expense . .............................................. 443 702 1 081
(1)
see note 8
(2)
This item primarily relates to Nokia Siemens Networks’ losses and temporary differences for
which no deferred tax was recognized. In 2010, it also includes a benefit of EUR 52 million from
the reassessment of recoverability of deferred tax assets in Nokia Siemens Networks.
(3)
The change in deferred tax liability on undistributed earnings mainly relates to changes to tax
rates applicable to profit distributions.
Certain of the Group companies’ income tax returns for periods ranging from 2004 through 2010 are
under examination by tax authorities. The Group does not believe that any significant additional
taxes in excess of those already provided for will arise as a result of the examinations.
F42
Notes to the Consolidated Financial Statements (Continued)