Samsung 2006 Annual Report Download - page 121

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111
The following table reconciles the expected amount of income tax expense based on
statutory rates to the actual amount of taxes recorded by the Company for the years
ended December 31, 2006 and 2005:
2006 2005
Income before taxes \9,827,646 \8,125,313
Statutory tax rate 27.50% 27.50%
Expected taxes at statutory rate 2,702,603 2,234,461
Tax credit (1,120,772) (1,292,932)
Others, net 52,156 276,717
Actual taxes \1,633,987 \1,218,246
Effective tax rate 16.63% 15.00%
Note 26 : Income Tax
The statutory income tax rate applicable to the Company, including resident surtax,
is 27.5%.
Income tax expense for the years ended December 31, 2006 and 2005, consists of
the following:
2006 2005
Current income taxes \1,652,083 \1,586,753
Deferred income taxes (10,702) (358,394)
Items charged directly to shareholders’ equity (7,394) (10,113)
\1,633,987 \1,218,246
(In millions of Korean won)
(In millions of Korean won)