13.14.1. Reconciliation of effective tax rate

13.14.2 Deferred tax

Income tax expenses
Income tax expenses (tax expense) include current tax and deferred tax. Current tax expense is determined in accordance with the relevant tax law based on the taxable profit for a given period and is recognised as a liability, in the amount which has not been paid or as an asset, if the amount of the current and prior periods income tax paid exceeds the amount due.

Deferred tax assets and liabilities are accounted for as non-current and are not discounted. They are offset on the level of particular separate financial statements of the Group companies when there is a legally enforceable right to set off the recognised amounts and relate to income tax imposed by the same tax authority on the same taxpayer.

Deferred tax assets and liabilities are measured at tax rates that are expected to apply to the period when the asset is realised or the liability is settled based on the tax rates (and tax laws) applicable as at the end of the reporting period or those whose future application is expected certain at the end of the reporting period.The impact of deferred tax is recognised in the result of the period, except for taxes arising from transactions or events that are recognised outside the result in other comprehensive income or directly in equity, or resulting from a business combination.

The Group recognises a deferred tax asset to transfer the unsettled tax losses and unused tax credit, to the extent that it is probable that there will be future taxable profit available, from which unsettled tax losses and unused tax credits can be write-off. The assessment of this probability is made on the basis of planned budgets to achieve the assumed tax revenues in the following years.