voestalpine AG Annual Report 2018/19 - 8. Income taxes (optimized for printing)

Income taxes include income taxes paid and owed as well as deferred taxes (+ income tax expense/ – income tax benefit).

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	2017/18	2018/19

Current tax expense	227.5	153.8
Effective tax expense	234.4	168.6
Adjustments of taxes from previous periods	–8.7	–14.1
Recognition of tax losses from previous periods	1.8	–0.7

Deferred tax expense	–10.4	33.3
Origination/reversal of temporary differences	–20.6	29.9
Adjustments of taxes from previous periods	7.2	8.6
Impact of changes in tax rates	10.2	2.2
Recognition of tax losses from previous periods	–7.2	–7.4

	217.1	187.1

In millions of euros

The effects of the changes in tax rates in the amount of EUR 2.2 million (2017/18: EUR 10.2 million) concern solely foreign taxes. The actual tax expense was reduced by the income tax effect of EUR –7.5 million from hybrid capital payments (2017/18: EUR –7.5 million).

The following reconciliation shows the difference between the Austrian corporate tax rate of 25% and the effective Group tax rate:

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	2017/18		2018/19

Profit before tax		1,042.5		645.7
Income tax expense using the Austrian corporate tax rate	25.0%	260.6	25.0%	161.4
Difference to foreign tax rates	0.1%	1.4	–0.5%	–3.6
Non-taxable income and expenses	–1.8%	–19.2	–3.8%	–24.5
Non-taxable income from investments	–0.5%	–4.8	–0.7%	–4.4
Effects of depreciation of investments and utilization of previously unincluded loss carryforwards and non-recognition of loss carryforwards	–4.1%	–43.0	1.5%	9.6
Taxes from previous periods	–0.1%	–1.5	–0.9%	–5.5
Hybrid capital	–0.7%	–7.5	–1.2%	–7.5
Other differences	3.0%	31.1	9.6%	61.6
Effective Group tax rate (%)/income tax expense	20.8%	217.1	29.0%	187.1

In millions of euros