Epson 2015 Annual Report Download - page 85

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84
Epson has no taxable temporary differences associated with investments in subsidiaries for which deferred tax
liabilities have not been recognised as of March 31, 2014 and 2015.
(2) Tax Expense
“Tax expense” recognised as an expense was as follows:
Deferred tax expense increased by ¥2,199 million and ¥3,424 million ($28,492 thousand) due to the effect of
changes in Japanese applicable tax rates for the years ended March 31, 2014 and 2015, respectively.
Deferred tax expense includes the benefit arising from a previously unrecognised tax loss, tax credit or temporary
difference of a prior period. These benefits that reduce deferred tax expense was ¥32,191 million and ¥13,253
million ($110,285 thousand) for the years ended March 31, 2014 and 2015, respectively.
In addition, deferred tax expense includes benefits arising from the reversal of previous write-downs of deferred
tax assets. These effects that increased deferred tax expense was ¥9,656 million for the year ended March 31, 2014.
(3) Reconciliation of the Effective Tax Rate
The breakdown of major items that caused differences between the effective statutory tax rate and the actual tax
rate was as follows.
Epson is subject mainly to corporate tax, inhabitant tax, and enterprise tax, and the effective statutory tax rates
calculated based on these taxes were 37.8% and 35.4% for the years ended March 31, 2014 and 2015, respectively.
The Special Corporation Tax for Reconstruction has been abolished in this fiscal year. Foreign subsidiaries are
subject to income tax at their locations.
%
Year ended
March 31, 2014
Year ended
March 31, 2015
Effective statutory tax rate
37.8
35.4
Different tax rates applied to foreign subsidiaries
(4.7)
(5.4)
Expenses not deductible for tax purposes
(1.4)
(0.8)
Reassessment of recoverability of deferred tax assets
(54.6)
(18.8)
Other
10.9
3.7
Actual tax rate
(12.0)
14.1
Millions of yen
Thousands of
U.S. dollars
March 31
March 31,
2014
2015
2015
1st year
646
-
-
2nd year
10
-
-
3rd year
97
-
-
4th year
792
-
-
5th year and thereafter
43,861
8,247
68,627
Total
45,409
8,247
68,627
Millions of yen
Thousands of
U.S. dollars
Year ended
March 31
Year ended
March 31,
2014
2015
2015
Current tax expense
(18,464)
(23,216)
(193,192)
Deferred tax expense
27,810
4,584
38,145
Total
9,345
(18,631)
(155,047)