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B Consolidated Annual Financial Statements/Notes V. Notes to the Consolidated Financial Statements of Salzgitter AG 232 233
The material actuarial premises applied at the Salzgitter Group are as follows:
31/12/2007 31/12/2006
Actuarial rate 5.25% 4.50%
Trend in salaries 2.75% 1.75% or 2.75%
Trend in pensions 1.75% 1.25%
Staff turnover 1.00% 1.00%
The Heubeck actuarial tables (Richttafeln) 2005 G were used to value the expected mortality of the
beneficiaries. As in the previous year, the actuarial tables devised by Prof. Heubeck (RT 2005 G) were
adjusted to the beneficiaries listed at the Essener Verband (Essen-based association) because they are
not suitable for valuing the provisions with regard to the life expectancy of this group of persons.
Income Taxes
In accordance with IAS 12, deferred tax is calculated using the accounting-oriented liability method.
Under this method, reductions in the tax burden and charges that are likely to arise in future are
reported for temporary differences between the book values shown in the consolidated financial statements
and the values attributed to assets and liabilities for tax purposes.
As of December 31, 2007, the deferred taxes of domestic corporations were valued using an overall
tax rate of 30.2%. This tax rate consists of the trade tax rate of 14.4% which applies as from 2008 and
the 15.8% corporation tax rate (including solidarity surcharge).
The German companies are subject to an average trade income tax rate of some 17% of trade earnings
in the financial year 2007, which is deductible when corporate income tax is being determined.
The corporate income tax rate amounts to a uniform 25%, plus a solidarity surcharge of 5.5% on
corporate income tax.
The calculation of foreign income tax is based on the laws and regulations applicable in the individual
countries.
The anticipated tax savings resulting from the utilization of loss carryforwards whose realization is
expected in the future are capitalized. When capitalized assets are valued for future reductions in the
tax burden, consideration is given to the probability of the expected tax benefit being realized.
Assets deriving from future reductions in the tax burden include deferred tax assets arising from
temporary differences between the book values stated in the consolidated balance sheet and values
attributed for tax purposes, as well as tax savings resulting from loss carryforwards whose realization is
anticipated at a future date.
Consolidated Annual
Financial Statements