Please activate JavaScript!
Please install Adobe Flash Player, click here for download

Allianz Annual Report 2012

on the Group result. The expected tax rate for domestic ­­Allianz Group companies applied in the reconciliation in- cludes corporate tax, trade tax and the solidarity surcharge, and amounts to 31.0 % (2011: 31.0 %; 2010: 31.0 %). The effective tax rate is determined on the basis of the ef- fective income tax expenses on income before income taxes. Effective tax rate D 115 € mn 2012 2011 2010 Income before income taxes Germany 963 (711) 651 Other countries 7,668 5,557 6,522 Total 8,631 4,846 7,173 Expected income tax rate 29.5 % 28.8 % 29.3 % Expected income taxes 2,548 1,398 2,099 Trade tax and similar taxes 237 201 176 Net tax exempt income (189) (40) (571) Effects of tax losses 2 178 279 Other effects 542 305 (19) Income taxes 3,140 2,042 1,964 Effective tax rate 36.4 % 42.1 % 27.4 % In the tax reconciliation for 2012, the other effects of € 542 mn include € 373 mn current and deferred taxes for prior years and a one-off tax expense from a tax law change in France of € 64 mn. For the year ended 31 December 2012, the write-down of deferred tax assets on tax losses carried forward resulted in deferred tax expenses of € – mn (2011: € 33 mn; 2010: € 153 mn). The non-recognition of deferred taxes on tax losses for the current fiscal year increased the tax expenses by € 52 mn (2011: € 161 mn; 2010: € 142 mn). Due to the use of tax losses carried forward for which no deferred tax asset was recog- nized, the current income tax expenses decreased by € 8 mn (2011: € 14 mn; 2010: € 15 mn). Deferred tax income of € 42 mn (2011: € 2 mn; 2010: € 1 mn) resulted from the recognition of deferred tax assets on tax losses carried forward from ear- lier periods for which no deferred taxes had yet been recog- nized. The above mentioned effects are shown in the recon- ciliation statement as “effects of tax losses”. The tax rates used in the calculation of the ­­Allianz Group’s deferred taxes are the applicable national rates, which in 2012 ranged from 10.0 % to 40.0 %. Changes to tax rates al- ready adopted on 31 December 2012 are taken into account. For the years ended 31 December 2012, 2011 and 2010, the income taxes relating to components of other comprehen- sive income consist of the following: income taxes relating to components of other comprehensive income D 114 € mn 2012 2011 2010 Foreign currency translation adjustments (11) (1) 41 Available-for-sale investments (2,522) 81 (146) Cash flow hedges (27) 4 (9) Share of other comprehensive income of associates – (1) (6) Miscellaneous 42 66 23 Total (2,518) 149 (97) During the year ended 31 December 2012, current income taxes included expenses of € 264 mn (2011: expenses of € 92 mn, 2010: income of € 150 mn) related to prior years. Due to the transition from the imputation system to the classical tax system in Germany (so called “Halbeinkünfte- verfahren”), provided by the Tax Reduction Act 2001, the ­­­Allianz Group lost potential tax savings. This has been cor- rected by the Annual German Tax Act published in Decem- ber 2010, leading to a tax income of € 110 mn from the rec- ognition of additional corporate tax credits. This tax benefit is included in current income taxes related to prior years in 2010. Of the deferred income taxes for the year ended 31 Decem- ber 2012, income of € 420 mn (2011: expenses of € 224 mn; 2010: income of € 69 mn) is attributable to the recognition of deferred taxes on temporary differences and expenses of € 233 mn (2011: income of € 25 mn; 2010: expenses of € 117 mn) are attributable to tax losses carried forward. Additionally, changes of applicable tax rates due to changes in tax law produced deferred tax expenses of € 3 mn (2011: expenses of € 46 mn; 2010: income of € 5 mn). The recognized income taxes for the year ended 31 Decem- ber 2012 are € 591 mn above (2011: € 644 mn above; 2010: € 135 mn below) the expected income taxes. The following table shows the reconciliation from the expected income taxes of the ­­Allianz Group to the effectively recognized taxes. The ­­Allianz Group’s reconciliation is a summary of the individual company-related reconciliations, which are based on the respective country-specific tax rates after tak- ing into consideration consolidation effects with an impact Annual Report 2012    Allianz Group322

Pages