Porsche 2008 Annual Report Download - page 179

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[10] Income tax expense
The income tax expense disclosed breaks down into:
An overall income tax rate of 30% (prior year: 30%) applies for Porsche’s German entities following
the enactment of the business tax reform act in 2008. For German entities of the Volkswagen
group the overall tax rate is 29.5%.
The income tax rates applied for foreign companies range between 0% and 42% (prior year:
between 0% and 41%). In the case of split tax rates, the tax rate applicable to undistributed profits
is applied. Changes in tax rates led to a recalculation of deferred taxes and thus tax income of
€7 million (prior year: tax expense of €1 million).
The current tax expense was reduced by €19 million (prior year: €1 million) as a result of the
utilization of previously unrecognized unused tax losses and tax credits. In deferred taxes this did
not lead to a reduction in the deferred tax expense in the two accounting periods.
No reversals of previously recognized impairments of deferred taxes were recognized (prior year:
€1 million). Recognized impairments of deferred taxes amounted to €6 million (prior year:
€0 million).
Previously unused tax and interest loss carryforwards for which no deferred tax assets were
recorded amounted to €4,043 million (prior year: €32 million). Tax and interest loss carryforwards
amounting to €1,087 million (prior year: €30 million) can be used indefinitely, while €1,423 million
(prior year: €2 million) must be used within the next ten years. There are additional tax and interest
loss carryforwards amounting to €1,533 million (prior year: €0 million), that can be used within a
period of 15 to 20 years.
No deferred tax assets were recognized in the balance sheet for tax credits of €143 million (prior
year: €0 million). Of the tax credits, an amount of €27 million (prior year: €0 million) has to be
used within the next ten years and an amount of €116 million (prior year: €0 million) within a
period of 10 to 15 years.
No deferred tax assets were recognized on unused deductible temporary differences of €1,373
million (prior year: €0 million). Of the deductible temporary differences, €4 million (prior year:
€0 million) can be used for an unlimited period of time, while the use of €1,369 million (prior year:
€0 million) is restricted to the next 10 years.
2008/09 2008/09 2007/08
€ million
Porsche
without VW
Current taxes, Germany 871 619 1,858
Current taxes, other countries 317 085
Current taxes 1,188 619 1,943
thereof income/expenses relating to other periods 579 591 – 1
Deferred tax income/expense, Germany – 1,658 – 915 221
Deferred tax income/expense, other countries – 357 54 13
Deferred taxes – 2,015 – 861 234
Income tax expense – 827 – 242 2,177