Annual report 2010 - Dexia.com

Notes to the consolidated financial statements11.14. Impairment on goodwillManagement report31/12/09 31/12/10Impairment on goodwill (6) 0The goodwill on Dexia banka Slovensko and Dexia Kommunalkredit Bank Polska has been reviewed and found impaired in2009.11.15 .Provisions for legal litigationsThe information regarding the provisions for legal litigations is presented in the Management report – chapter legal risk –onpage 89.Consolidatedfinancial statementsAdditional information Annual financial statements11.16. Tax expense31/12/09 31/12/10Income tax on current year (248) (140)Deferred taxes on current year (126) (30)Tax on current year result (A) (375) (170)Income tax on previous year 40 2Deferred taxes on previous year 52 (11)Provision for tax litigations (31) 52Other tax expense (B) 61 43Total (A)+(B) (314) (127)Effective corporate income tax chargeThe standard tax rate applicable in Belgium in 2009 and 2010 was 33.99%.Dexia effective tax rate was respectively 27.3% and 18.5% for 2009 and 2010.The difference between the standard and the effective tax rate can be analysed as follows:31/12/09 31/12/10Net income before tax 1,403 924Income and losses from companies accounted for by the equity method 39 5Impairment on goodwill (6) 0Tax base 1,370 919Statutory tax rate 33.99% 33.99%Tax expense using statutory rate 466 312Tax effect of rates in other jurisdictions (133) (166)Tax effect of non-taxable revenues (1) (357) (262)Tax effect of non-tax deductible expenses 192 194Tax effect of utilisation of previously unrecognised tax losses (4) (1)Tax effect from reassessment of unrecognised deferred tax assets 314 695Items taxed at a reduced rate (60) (106)Other increase (decrease) in statutory tax charge (2) (44) (495)Tax on current year result 374 170Tax base 1,370 919Effective tax rate 27.3% 18.5%(1) Mainly non-taxable gains on sales of equity shares.(2) Includes tax deduction on impairment on consolidated shares.202 Dexia Annual report 2010