Income Tax Expense

2013

In 2013, income tax expense was € 775 million, which led to an effective tax rate of 53 % compared to an income tax expense of € 498 million and an effective tax rate of 61 % in 2012. The current year’s effective tax rate in 2013 was mainly impacted by expenses that are not deductible for tax purposes.

2012

In 2012, the income tax expense was € 498 million, which led to an effective tax rate of 61 % compared to an income tax expense of € 1.1 billion and an effective tax rate of 20 % in 2011. The effective tax rate in 2012 was mainly impacted by expenses that are not deductible for tax purposes which include impairments of goodwill. The effective tax rate in 2011 primarily benefited from changes in the recognition and measurement of deferred taxes, a favorable geographic mix of income and the partial tax exemption of net gains related to our stake in Hua Xia Bank.