2011 Annual Report - Italcementi Group

The reconciliation between the tax charge reflected in the income statement and the theoretical tax charge
does not consider IRAP, since IRAP uses a taxable base other than profit before tax.
The reconciliation between the theoretical tax charge, determined using theoretical tax rates applicable in Italy,
and the effective tax charge reflected in the consolidated income statement is set out below:
(in thousands of euro) 2011
Consolidated profit before tax 53,038
Applicable IRES tax rate % 27.5%
Theoretical tax charge 14,585
Effect of difference between parent tax rate and tax rate for the other companies (1) 4,556
Effect of tax rate reduction for tax relief/allowances -
Tax effect on permanent differences (3,564)
Net effect for the year of unrecognized deferred taxes on temporary differences (2) 30,922
Effect of change in tax rates (3) 11,558
Withholdings at source 3,669
Effect of change in estimate on previously recognized/unrecognized deferred tax (1,817)
Other taxes -
Tax on profit for the year reflected in income statement, exclusing IRAP (a) 59,909
Effective tax rate, excluding IRAP and other tax items not related to the profit for the year n.s.
Other tax items not related to the profit for the year (b) 4,908
IRAP (c) 3,994
Tax on profit for the year reflected in income statement (a+b+c) 68,811
Effective tax rate
n.s.
n.s. = not significant
(1) The difference between the Italian tax rate for the parent and the rates in the foreign countries where the Group operates refers principally to
France, Belgium and the USA.
(2) Refers mainly to unrecognized deferred tax assets on losses for the year in the USA:
(3) The effect of the change in tax rates refers largely to Egypt.
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