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29. Income taxes

Major components of tax expenses/(income)
in thousand EUR   2018   2017
Current tax expenses/(income)   322   561
Deferred tax expenses/(income) relating to temporary differences   339   –431
Total   661   131
Reconciliation of tax expenses/(income)
in thousand EUR   2018   2017
Earnings before tax   –1 056   1 774
Expected tax expenses/(income) based on a weighted average   –281   488
Tax adjustments related to prior years   321   831
Effect of revaluation of DTA and unrecognized tax losses   260   –2 026
Change in permanent differences   65   838
Non-deductible expense   296  
Total income taxes   661   131

The weighted average applicable tax rate, considering all profit and loss making entities, was 27 % (2017: 27 %).

Deferred income tax
in thousand EUR   2018   2017
Total deferred tax assets   3 064   3 963
Total deferred tax liabilities   –3 015   –3 582
Net deferred tax assets/(liabilities)   49   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   2018   2017
Property, plant and equipment   1 090  
Tax loss carry-forwards   1 011   3 041
Financial liabilities   484   534
Other   479   388
Total deferred tax assets   3 064   3 963
Deferred income tax liabilities
in thousand EUR   2018   2017
Property, plant and equipment   –2 490   –2 825
Intangible assets   –368   –453
Financial assets   –25   –304
Other   –132  
Total deferred tax liabilities   –3 015   –3 582
 
Net deferred tax assets/(liabilities)   49   381
Reported in the balance sheet as follows:        
Deferred tax assets   1 620   1 621
Deferred tax liabilities   –1 571   –1 240
Net deferred tax assets/(liabilities)   49   381

Net movement of the deferred income tax account is as follows:

in thousand EUR   2018   2017
At 1 January   381  
Income statement charge   –339   431
Tax charged to other comprehensive income   3   –54
Currency effects   3   4
At 31 December   49   381

The Group did not recognize deferred income tax assets on deduc­tible temporary differences of EUR 15.9 million (2017: EUR 11.9 million) and on unused tax losses of EUR 88.7 million (2017: EUR 91.7 million).

These unrecognized tax loss carry-forwards expire as shown in the table below:

in thousand EUR   2018   2017
0–2 years   28 895   26 597
3–4 years   35 538   16 809
5–7 years   954   27 073
over 7 years   23 284   21 266
Total tax loss carry-forwards   88 671   91 745

EUR 11.7 million of these loss carry-forwards belong to the Dutch operations of Precious Woods with an applicable tax rate of 25 % (2017: EUR 16.9 million with an applicable tax rate of 20 %), EUR 12.7 million belong to the Brazilian operations with an applicable tax rate of 34 % (2017: EUR 15.5 million with an applicable tax rate of 34 %), EUR 10.3 million belong to the Gabonese operations with an applicable tax rate of 30 % (2017: EUR 5.6 million with an applicable tax rate of 30 %) and EUR 53.9 million belong to the Swiss operation with an applicable tax rate of 9.6 % (2017: EUR 53.7 million with an applicable tax rate of 9.6 %).