SEC Form 20-F - Deutsche Bank Annual Report 2012

Deutsche Bank Additional Notes F-151
Annual Report 2010 on Form 20-F 34 – Income Taxes
Income tax expense (benefit) includes policyholder tax attributable to policyholder earnings, amounting to an
income tax expense of € 37 million in 2010 and income tax benefits of € 1 million and € 79 million in 2009 and
2008, respectively.
Total current tax expense includes benefits from previously unrecognized tax losses, tax credits and deductible
temporary differences, which reduced the current tax expense by € 6 million in 2010. In 2009 these effects
reduced the current tax expense by € 0.2 million and increased the current tax benefit by € 45 million in 2008.
Total deferred tax expense includes expenses arising from write-downs of deferred tax assets and benefits from
previously unrecognized tax losses (tax credits/deductible temporary differences) and the reversal of previous
write-downs of deferred tax assets, which increased the deferred tax expense by € 173 million in 2010. In 2009
these effects increased the deferred tax benefit by € 537 million and reduced the deferred tax benefit by
€ 971 million in 2008.
The following is an analysis of the difference between the amount that results from applying the German statutory
(domestic) income tax rate to income before tax and the Group’s actual income tax expense.
in € m. 2010 2009 2008
Expected tax expense at domestic income tax rate of 30.7 %
(30.7 % for 2009 and 2008) 1,219 1,595 (1,760)
Foreign rate differential 63 (63) (665)
Tax-exempt gains on securities and other income (556) (763) (746)
Loss (income) on equity method investments (87) (29) (36)
Nondeductible expenses 335 624 403
Deutsche Postbank AG related charge with no tax benefit 668 – –
Goodwill impairment – – 1
Changes in recognition and measurement of deferred tax assets 167 (537) 926
Effect of changes in tax law or tax rate 7 3 26
Effect related to share-based payments 48 (95) 227
Effect of policyholder tax 37 (1) (79)
Other (256) (490) (142)
Actual income tax expense (benefit) 1,645 244 (1,845)
The line item Other in the preceding table mainly reflects improved income tax positions in the U.S. including a
new basis for filing the U.S. federal income tax return in 2010 and the nonrecurring effect of settling
examinations in 2009.
The domestic income tax rate, including corporate tax, solidarity surcharge, and trade tax, used for calculating
deferred tax assets and liabilities was 30.7 % for the years ended December 31, 2010, 2009 and 2008.