Pioneer 2012 Annual Report Download - page 43

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2012 2011
Statutory tax rate 41.0% 41.0%
Expenses not deductible for income tax purposes 5.9 2.1
Revenue not taxable for income tax purposes (32.4) (0.1)
Difference in foreign and Japanese tax rates (29.5) (12.6)
Valuation allowance 24.7 8.0
Effect of tax rate reduction 7.0 –
Foreign tax credits 8.6 –
Others—net 2.6 1.5
Actual effective tax rate 27.9% 39.9%
11. Research and Development Costs
Research and development costs charged to income were ¥34,590 million ($421,829 thousand) and ¥33,040
million for the years ended March 31, 2012 and 2011, respectively.
Reconciliation between the statutory tax rates and the actual effective tax rates reflected in the accompanying
consolidated statements of income for the years ended March 31, 2012 and 2011, were as follows:
Net deferred tax assets for the years ended March 31, 2012 and 2011, were included in the following accounts:
Millions of Yen
Thousands of
U.S. Dollars
2012 2011 2012
Current assets:
Deferred tax assets ¥ 7,874 ¥5,530 $ 96,024
Investments and other assets:
Deferred tax assets 5,902 6,057 71,976
Long-term liabilities:
Other long-term liabilities (1,169) (1,933) (14,256)
Following the promulgation of the “Act for Partial
Amendment of the Income Tax, etc., for the Purpose
of Creating a Taxation System Responding to
Changes in Economic and Social Structures” (Act
No. 114, 2011) and the “Act on Special Measures
for Securing Financial Resources Necessary to
Implement Measures for Reconstruction following the
Great East Japan Earthquake” (Act No. 117, 2011)
on December 2, 2011, the statutory tax rates used
in the calculation of deferred tax assets and liabilities
(limited to deferred tax assets and liabilities which will
be reversed on and after April 1, 2012) for the fiscal
year ended March 31, 2012 decreased from 41.0%
to 38.0% for temporary differences for which the
collection or payments are expected to take place
from April 1, 2012, to March 31, 2015, and 36.0% for
those from April 1, 2015, and thereafter. The effect of
the tax rate change is immaterial.
41
Pioneer Corporation Annual Report 2012