4.5.10Income tax expense
The numerical reconciliation between the applicable and effective tax rate is as follows:
2024 | 2023 | ||
|---|---|---|---|
Result before tax of the Company for current year | (34) | (35) | |
Corporate income tax against applicable rate (25.8%) | 9 | 9 | |
Results allocated by the members to the Company for current year | (2) | (2) | |
Non-deductible costs | (6) | (5) | |
Adjustments in respect of prior year(s) | - | (0) | |
Profits from foreign operations | - | (0) | |
Other adjustments | (1) | - | |
Deferred tax effect on unrecognized tax losses for current year | (1) | (2) | |
Deferred tax effect on unrecognized tax losses in respect of prior year(s) | - | (3) | |
Total corporate income tax | (1) | (3) | |
Effective corporate income tax rate | (3%) | (8%) |
The Company is the head of the fiscal unity for the Dutch corporate income tax (refer to 4.5.11 Commitments and Contingencies), where the Company will bear the burden of the corporate income tax charge, based on the taxable income of the fiscal unity, taking into account the losses available for set-off from the previous financial years, exempt profit components and after the addition of non-deductible costs that are attributable to the Netherlands.
The applicable Dutch corporate income tax rate for taxable income up to EUR 200 thousand (2023: EUR 200 thousand) is 19% (2023: 19%) and 25.8% (2023: 25.8%) for profits that exceed EUR 200 thousand (2023: EUR 200 thousand). The effective corporate income tax rate for the current year is (3%) whereas the prior year rate was (8%). The variance in the effective corporate income tax rate compared with the prior year period is mainly due to the deferred tax effect on unrecognized tax losses recognized in 2023 for past years. In addition, the other adjustments for the current tax provision are in relation to the estimated impacts of top-up taxes arising under the GloBe rules.