Note 23 - Income tax
| Parent Bank | Group | |||
| 2019 | 2020 | (NOK million) | 2020 | 2019 |
| 2.715 | 1.629 | Result before tax | 2.299 | 3.121 |
| -955 | -436 | +/- permanent differences | -522 | -1.091 |
| 139 | 161 | +/- change in temporary differences as per specification | 142 | 124 |
| - | - | + deficit carried forward | -118 | 37 |
| 1.899 | 1.355 | Year's tax base/taxable income | 1.800 | 2.191 |
| 475 | 339 | Tax payable on profit for the year | 422 | 547 |
| 4 | - | Excess/too little tax accrued previous year | - | - |
| 479 | 339 | Total taxes payable | 422 | 547 |
| 479 | 339 | Tax payable on profit for the year | 422 | 547 |
| -28 | -40 | +/- change in deferred tax | -8 | -30 |
| -14 | Taxes on interest hybrid capital | -14 | ||
| 451 | 284 | Tax charge for the year | 400 | 518 |
| Change in net deferred tax liability | ||||
| -28 | -32 | Deferred tax shown through profit/loss | -8 | -30 |
| -8 | -8 | Deferred tax shown through equity | -8 | -8 |
| Reclassification tax payable/deferred tax* | 23 | |||
| -36 | -40 | Total change in net deferred tax liability | -16 | -15 |
| * Due to changes in temporary differences between annual accounts and final tax papers | ||||
| 2019 | 2020 | Composition of deferred tax carried in the balance sheet (NOK million) | 2020 | 2019 |
| Temporary differences: | ||||
| - Business assets | 14 | 14 | ||
| - | - | - Leasing items | 321 | 281 |
| 132 | 102 | - Pension liability | 104 | 133 |
| 107 | 43 | - Securities | 45 | 109 |
| 125 | 604 | - Hedge derivatives | 604 | 125 |
| - Other temporary differences | 5 | 5 | ||
| 364 | 749 | Total tax-increasing temporary differences | 1.093 | 668 |
| 91 | 187 | Deferred tax | 273 | 169 |
| Temporary differences: | ||||
| -10 | -17 | - Business assets | -24 | -28 |
| - Pension liability | - | - | ||
| - Securities | -1 | - | ||
| -156 | -617 | - Hedge derivatives | -617 | -156 |
| -6 | -83 | - Other temporary differences | -181 | -86 |
| - Deficit carried forward | -470 | -572 | ||
| -172 | -718 | Total tax-decreasing temporary differences | -1.294 | -842 |
| -43 | -179 | Deferred tax asset | -320 | -212 |
| 48 | 8 | Net deferred tax (-asset ) | -47 | -43 |
The above table comprises temporary differences from all consolidated companies shown gross. At the company level tax-increasing and tax-reducing temporary differences are shown net. At the group level recognition is on a gross basis in conformity with IAS 12 with each company being presented separately in the calculation of the Group's tax benefit and deferred tax:
| 2020 | 2019 | |||
| Tax benefit recorded 31 Dec | 129 | 158 | ||
| Deferred tax recorded 31 Dec | -81 | -115 | ||
| 2019 | 2020 | Reconciliation of tax charge for the period recognised against profit and loss to profit before tax | 2020 | 2019 |
| 679 | 407 | 25 % of profit before tax | 546 | 773 |
| -239 | -109 | Non-taxable profit and loss items (permanent differences) * | -124 | -272 |
| 8 | -14 | Tax effect of costs reflected in equity | -14 | 8 |
| 4 | Too little taxes accrued previous year | -0 | 7 | |
| Change in tax assets not recognised | -8 | - | ||
| 451 | 284 | Tax for the period recognised in the income statement | 400 | 516 |
| 17 % | 17 % | Effective tax rate | 17 % | 17 % |
| * Includes non-deductible costs and and deduction for profit share related to associates and joint ventures (profit shares are taken out having already been taxed at the respective companies) | ||||
Financial results
Annual report and notes
