Annual report 2009 - Dexia.com

Notes to the consolidated fi nancial statements11.14. Impairment on goodwillManagement reportConsolidatedfinancial statementsAnnual financial statementsAdditional information31/12/08 31/12/09Impairment on goodwill (12) (6)The goodwill on Dexia Bank Denmark A/S and the goodwill on Financial Security Assurance Holdings Ltd has been reviewedand found impaired in 2008.The goodwill on Dexia banka Slovensko and Dexia Kommunalkredit Bank Polska has been reviewed and found impaired in2009.11.15. Tax expense31/12/08 31/12/09Income tax on current year (328) (248)Deferred taxes on current year 917 (126)Tax on current year result (A) 589 (375)Income tax on previous year 68 40Deferred taxes on previous year (33) 52Provision for tax litigations 5 (31)Other tax expense (B) 40 61TOTAL (A)+(B) 629 (314)EFFECTIVE CORPORATE INCOME TAX CHARGEThe standard tax rate applicable in Belgium in 2008 and 2009 was 33.99%Dexia effective tax rate was respectively 15.3% and 27.3% for 2008 and 2009.The difference between the standard and the effective tax rate can be analysed as follows:31/12/08 31/12/09Net income before tax (3,877) 1,403Income and losses from companies accounted for by the equity method (1) 39Impairment on goodwill (12) (6)Tax base (3,864) 1,370Statutory tax rate 33.99% 33.99%Tax expense using statutory rate (1,313) 466Tax effect of rates in other jurisdictions 21 (133)Tax effect of non-taxable revenues (1) (308) (357)Tax effect of non-tax deductible expenses 665 192Tax effect of utilisation of previously unrecognised tax losses 0 (4)Tax effect on taxable benefit not previously recognised in profit or loss (5) 0Tax effect from reassessment of unrecognised deferred tax assets 454 314Tax effect of change in tax rates 4 0Items taxed at a reduced rate (56) (60)Other increase (decrease) in statutory tax charge (51) (44)Tax on current year result (589) 374Taxe base (3,864) 1,370Effective tax rate 15.3% 27.3%(1) Mainly non-taxable gains on sales of equity shares.184Dexia Annual report 2009