Annual Report - VÚB banka

32. Income tax expense
2007 2006
Current income tax (934) (187)
Deferred income tax (103) (860)
(1,037) (1,047)
The movement in the income statement in deferred taxes is as follows:
2007 2006
Loans and securities (40) (707)
Property and equipment (28) (136)
Other liabilities and provisions (33) (1)
Tax losses carried forward (2) (22)
Other - 6
(103) (860)
The effective tax rate differs from the statutory tax rate in 2007 and in 2006.
Reconciliation of the Bank’s profi t before tax with the actual corporate income tax is as follows:
98
2007 2006
Profi t before tax 4,537 4,805
Applicable tax rate 19% 19%
Theoretical tax charge (862) (913)
Permanent differences and previously unrecognized deferred tax assets (164) (124)
Adjustments for current tax of prior periods (11) (10)
Tax expense (1,037) (1,047)
Effective tax rate 23% 22%
33. Profit before changes in operating assets and liabilities
2007 2006
Profi t before tax 4,537 4,805
Adjustments for:
Amortization 331 304
Depreciation 600 586
Unrealized profi t from securities held for trading
and available-for-sale securities (64) (11)
Interest income (13,634) (11,292)
Interest expense 6,157 4,711
Dividend income (47) (139)
Income / (loss) on sale of property and equipment 9 (39)
Provisions and impairment losses 598 (416)
Interest received 13,091 11,794
Interest paid (5,848) (4,499)
Dividends received 47 139
Tax received / (paid) 302 (1,282)
6,079 4,661
Annual Report 2007