31. Income taxes
Major components of tax expenses/(income)
| in thousand EUR | 2017 | 2016 | ||
|---|---|---|---|---|
| Current tax expenses/(income) | 561 | 1 | ||
| Deferred tax expenses/(income) relating to temporary differences | –431 | – | ||
| Total | 131 | 1 |
Reconciliation of tax expenses/(income)
| in thousand EUR | 2017 | 2016 | ||
|---|---|---|---|---|
| Earnings before tax | 1 774 | –2 751 | ||
| Expected tax expenses/(income) based on a weighted average | 488 | –767 | ||
| Tax adjustments related to prior years | 831 | – | ||
| Effect of revaluation of DTA | 85 | 6 | ||
| Prior year unrecognized tax losses | –2 538 | – | ||
| Unrecognized tax losses and temporary differences | 427 | 762 | ||
| Change in permanent differences | 838 | – | ||
| Total income taxes | 131 | 1 |
The weighted average applicable tax rate, considering all profit and loss making entities, was 27 % (2016: 28 %).
Deferred income tax
| in thousand EUR | 2017 | 2016 | ||
|---|---|---|---|---|
| Total deferred tax assets | 3 963 | 3 576 | ||
| Total deferred tax liabilities | –3 582 | –3 576 | ||
| Net deferred tax assets/(liabilities) | 381 | – |
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset them and when the deferred income taxes relate to the same tax authority.
Deferred income tax assets
| in thousand EUR | 2017 | 2016 | ||
|---|---|---|---|---|
| Tax loss carry-forwards | 3 041 | 2 491 | ||
| Financial liabilities | 534 | 677 | ||
| Other | 388 | 408 | ||
| Total deferred tax assets | 3 963 | 3 576 |
Deferred income tax liabilities
| in thousand EUR | 2017 | 2016 | ||
|---|---|---|---|---|
| Property, plant and equipment | –2 825 | –3 007 | ||
| Intangible assets | –453 | –567 | ||
| Financial assets | –304 | – | ||
| Financial liabilities | – | –2 | ||
| Total deferred tax liabilities | –3 582 | –3 576 | ||
| Net deferred tax assets/(liabilities) | 381 | – | ||
| Reported in the balance sheet as follows: | ||||
| Deferred tax assets | 1 621 | – | ||
| Deferred tax liabilities | –1 240 | – | ||
| Net deferred tax assets/(liabilities) | 381 | – | ||
Net movement of the deferred income tax account is as follows:
| in thousand EUR | 2017 | 2016 | ||
|---|---|---|---|---|
| At 1 January | – | 6 | ||
| Income statement charge | 431 | – | ||
| Tax charged to other comprehensive income | –54 | –161 | ||
| Translation difference | 4 | 155 | ||
| At 31 December | 381 | – |
The Group did not recognize deferred income tax assets on deductible temporary differences of EUR 11.9 million (2016: EUR 12.5 million) and on unused tax losses of EUR 91.7 million (2016: EUR 211.5 million).
These unrecognized tax loss carry-forwards expire as shown in the table below:
| in thousand EUR | 2017 | 2016 | ||
|---|---|---|---|---|
| 0–2 years | 26 597 | 110 400 | ||
| 3–4 years | 16 809 | 30 490 | ||
| 5–7 years | 27 073 | 37 884 | ||
| over 7 years | 21 266 | 32 703 | ||
| Total tax loss carry-forwards | 91 745 | 211 477 |
EUR 16.9 million of these loss carry-forwards belong to the Dutch operations of Precious Woods with an applicable tax rate of 20 % (2016: EUR 18.1 million with an applicable tax rate of 25 %), EUR 15.5 million belong to the Brazilian operations with an applicable tax rate of 34 % (2017: EUR 17.0 million with an applicable tax rate of 34 %), EUR 5.6 million belong to the Gabonese operations with an applicable tax rate of 30 % (2016: EUR 15.6 million with an applicable tax rate of 30 %) and EUR 53.7 million belong to the Swiss operation with an applicable tax rate of 9.6 % (2016: EUR 160.7 million with an applicable tax rate of 8.8 %).