TomTom 2005 Annual Report Download - page 74
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8.Incometax
TheactivitiesofTomTomNVaresubjecttocorporateincometaxinallcountrieswheretheCompanyhasanactive
subsidiary.Theapplicablestatutorytaxratesvarybetween25%and40%.Thistogetherwithtaxlossesinsome
countries,non-deductibleamortisationofintangibleassetsandsometimingdifferencescausestheeffectivetaxrate
todifferfromtheweightedaveragecorporatetaxrate.
Theeffectivetaxrate,basedonincomebeforetaxes,is31.8%(2004:35.0%).
Thereconciliationbetweenthetaxchargeonthebasisoftheweightedaveragetaxrateandtheeffectivetaxrateis
asfollows:
2004 2005
Weightedaveragetaxrate 34.5% 31.6%
Amortisationofintangibleassets 0.0% 0.2%
Stockoptioncosts(includingmutationofdeferredtaxposition) 0.6% 0.1%
Other -0.1% -0.1%
Effectivetaxrate 35.0% 31.8%