11 Income taxes
2012 | 2013 | |
|---|---|---|
CHF 1,000 | Restated | |
Current income taxes | 8,622 | 8,647 |
Deferred taxes | 1,751 | 1,175 |
Total income taxes | 10,373 | 9,822 |
The income tax expense can be analyzed as follows:
2012 | 2013 | |
|---|---|---|
CHF 1,000 | Restated | |
Profit before taxes | 52,738 | 55,493 |
Tax expense based on the Group’s weighted average rate of 21.5% (2012: 22.1%) | 11,653 | 11,915 |
Non-deductible expenses and additional taxable income | 380 | 432 |
Tax-free income and tax reductions | (2,298) | (2,491) |
Unrecoverable withholding tax | 10 | 226 |
Under/(over) provided in prior years | 480 | (368) |
Effect of tax rate change on opening deferred taxes | 148 | 108 |
Tax expense reported | 10,373 | 9,822 |
The tax rate of the Group is the weighted average tax rate obtained by applying the currently effective rate for each individual jurisdiction to its respective profit before taxes.
As a result of changes in the country mix of the profit before taxes, the Group’s expected tax rate for 2013 decreased to 21.5%.
Deferred tax assets and liabilities are attributable to the following:
2012 | 2012 | Change 2013 | 2013 | |
|---|---|---|---|---|
CHF 1,000 | January 1 | December 31 Restated | December 31 | |
Net deferred tax assets arising from temporary differences | ||||
Receivables | 1,700 | 6 | (98) | (92) |
Inventories | 1,680 | 1,974 | (115) | 1,859 |
Property, plant and equipment | (640) | (708) | (97) | (805) |
Intangible assets | (594) | (903) | (653) | (1,556) |
Liabilities and accrued expenses | 4,760 | 6,058 | (205) | 5,853 |
Provisions | 1,215 | 523 | (329) | 194 |
Other | (468) | 363 | (306) | 57 |
Subtotal net deferred tax assets arising from temporary differences | 7,653 | 7,313 | (1,803) | 5,510 |
Deferred taxes provided on expected dividends from subsidiaries | (1,062) | (1,060) | (215) | (1,275) |
Potential tax benefits from tax loss carry-forwards | 1,334 | 1,138 | (79) | 1,059 |
Total net deferred tax assets | 7,925 | 7,391 | (2,097) | 5,294 |
Deferred taxes recognized in profit or loss |
| (1,751) |
| (1,175) |
Deferred taxes recognized in other comprehensive income |
| 1,645 |
| (520) |
Deferred taxes recognized in equity | – | (78) | ||
Acquisition through business combination |
| (125) |
| – |
Translation differences |
| (303) |
| (324) |
Total change compared with previous year |
| (534) |
| (2,097) |
Temporary differences on inventories primarily related to income on intra-Group profit eliminated for consolidation purposes.
Tax loss carry-forwards:
Potential tax benefits | ||
|---|---|---|
CHF 1,000 | 2012 | 2013 |
1st – 5th year | – | – |
6th year or beyond | – | – |
Unlimited | 1,138 | 1,059 |
Total tax loss carry-forwards capitalized | 1,138 | 1,059 |
The potential tax benefits of all available tax loss carry-forwards were capitalized at year-end 2012 and 2013.
Deferred taxes are included in the balance sheet as follows:
| 2012 | 2012 | 2013 |
|---|---|---|---|
CHF 1,000 | January 1 | December 31 | December 31 |
Deferred tax assets | 10,610 | 9,888 | 9,163 |
Deferred tax liabilities | (2,685) | (2,497) | (3,869) |
Net asset at January 1 / December 31 | 7,925 | 7,391 | 5,294 |