Annual Report 2012 - Raiffeisen Bank Kosovo JSC

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23. Income taxes
2012 2011
Current tax charge 748 1,481
Deferred taxation 801 (95)
Income tax expense for the year 1,549 1,386
The income tax rate applicable to the Bank’s income is 10 per cent (31 December 2011: 10 per cent). The reconciliation
between the expected and the actual taxation charge is provided below.
2012 2011
Profit before taxation 14,170 13,776
Tax charge for the year at the applicable statutory rate 1,417 1,378
Tax effect of items which are not deductible for taxation purposes and other regulatory differences (669) 103
Adjustment on previous year tax expense - -
Current tax charge 748 1,481
Differences between IFRS financial statements and Kosovo statutory taxation regulations give rise to certain temporary
differences between the carrying amount of certain assets and liabilities for financial reporting purposes and for profit
tax purposes. The tax effect of the movement on these temporary differences is recorded at the rate of 10 per cent.
Movement
2011 during 2012 2012
Tax effect of deductible temporary differences
Leasehold improvements, equipment and intangible assets (88) - (88)
Term deposits – accrued interest 164 7 171
Gross deferred tax asset/(liability) 76 7 83
Tax effect of taxable temporary differences
Loan impairment provision (903) (823) (1,725)
Off Balance sheet provision (20) 14 (6)
Total net deferred tax asset / (liability) (847) (802) (1,648)