PANDORA Annual Report 2017

P A N D O R A A N N U A L R E P O R T 2 0 1 7 P A R E N T C O M P A N Y C O N T E N T S 1 0 6 INCOME TAX EXPENSE DKK million 2017 2016 Current income tax charge for the year 1,205 1,127 Deferred tax change for the year 114 -15 Adjustment to tax for prior years -2 -4 Total income tax expense 1,317 1,108 Deferred tax on other comprehensive income -4 15 Tax on other comprehensive income -4 15 Reconciliation of effective tax rate and tax % DKK million % DKK million Profit before tax 10,818 5,950 Corporate tax rate in Denmark, 22% 22.0 2,380 22.0 1,309 Non-taxable dividend income -11.6 -1,251 -3.2 -192 Other adjustments including adjustments to tax prior years 0.0 -5 -0.2 -10 Withholding taxes 1.8 193 0.0 1 Effective income tax rate/income tax expense 12.2 1,317 18.6 1,108 DEFERRED TAX DKK million 2017 2016 Deferred tax at 1 January -310 -283 Recognised in the income statement -121 17 Recognised in other comprehensive income 4 -15 Recognised in equity, share-based payments -40 -29 Deferred tax at 31 December -467 -310 Deferred tax assets - - Deferred tax liabilities -467 -310 Deferred tax, net -467 -310 Specification of deferred tax Intangible assets -637 -595 Property, plant and equipment 10 10 Other assets and liabilities 160 275 Deferred tax, net -467 -310 ACCOUNTING POLICIES INCOME TAX PANDORA A/S is taxed jointly with its Danish subsidiaries. These subsidiaries are included in the joint taxation from the date they are recognised in the consolidated financial statements and up to the date on which they are no longer consolidat- ed. The jointly taxed Danish companies are taxed under the on-account tax scheme. NOTE 2.3 TAXAT I ON Further information is provided in note 2.5 to the consolidated financial statements.