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 %).