Note 23 - Income tax
| Parent Bank | Group | |||
| 2020 | 2021 | (NOK million) | 2021 | 2020 |
| 1,629 | 2,760 | Result before tax | 3,501 | 2,299 |
| -436 | -689 | +/- permanent differences | -691 | -522 |
| 161 | 45 | +/- change in temporary differences as per specification | 99 | 142 |
| - | - | + deficit carried forward | -307 | -118 |
| 1,355 | 2,116 | Year's tax base/taxable income | 2,603 | 1,800 |
| 339 | 529 | Tax payable on profit for the year | 593 | 422 |
| -14 | -12 | Taxes on interest hybrid capital | -13 | -14 |
| -3 | -4 | Excess/too little tax accrued previous year | 3 | - |
| 322 | 513 | Total taxes payable in statement of financial position | 583 | 408 |
| 339 | 529 | Tax payable on profit for the year | 593 | 422 |
| -40 | 1 | +/- change in deferred tax | 29 | -8 |
| -14 | -12 | Taxes on interest hybrid capital | -13 | -14 |
| 284 | 518 | Tax charge for the year | 609 | 400 |
| Change in net deferred tax liability | ||||
| -14 | -1 | Deferred tax shown through profit/loss | 29 | -8 |
| 6 | 12 | Deferred tax shown through equity | -13 | -8 |
| - | - | Too little taxes accrued previous year* | -3 | - |
| -8 | 11 | Total change in net deferred tax liability | 13 | -16 |
| * Due to changes in temporary differences between annual accounts and final tax papers. | ||||
| 2020 | 2021 | Composition of deferred tax carried in the balance sheet (NOK Million) | 2021 | 2020 |
| Temporary differences: | ||||
| - | - | - Business assets | 25 | 14 |
| - | - | - Leasing items | 257 | 321 |
| 102 | 54 | - Pension liability | 56 | 104 |
| 43 | 52 | - Securities | 52 | 45 |
| 604 | 154 | - Hedge derivatives | 154 | 604 |
| - | - | - Other temporary differences | 3 | 5 |
| 749 | 260 | Total tax-increasing temporary differences | 546 | 1,093 |
| 187 | 65 | Deferred tax | 136 | 273 |
| Temporary differences: | ||||
| -17 | -12 | - Business assets | -25 | -24 |
| - | - | - Pension liability | -2 | - |
| - | -93 | - Securities | -83 | -1 |
| -617 | -136 | - Hedge derivatives | -136 | -617 |
| -83 | -33 | - Other temporary differences | -135 | -181 |
| - | - | - Deficit carried forward | -306 | -470 |
| -718 | -273 | Total tax-decreasing temporary differences | -685 | -1,294 |
| -179 | -68 | Deferred tax asset | -170 | -320 |
| 8 | -3 | Net deferred tax (-asset ) | -34 | -47 |
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:
| 2021 | 2020 | |||
| Tax benefit recorded 31 Dec | 90 | 129 | ||
| Deferred tax recorded 31 Dec | -56 | -81 | ||
| 2020 | 2021 | Reconciliation of tax charge for the period recognised against profit and loss to profit before tax | 2021 | 2020 |
| 407 | 690 | 25 % of profit before tax | 880 | 546 |
| -109 | -172 | Non-taxable profit and loss items (permanent differences) * | -236 | -124 |
| -14 | - | Tax effect of costs reflected in equity | - | -14 |
| - | - | Too little taxes accrued previous year | 0 | -0 |
| - | - | Change in tax assets not recognised | -34 | -8 |
| 284 | 518 | Tax for the period recognised in the income statement | 609 | 400 |
| 17 % | 19 % | Effective tax rate | 17 % | 17 % |
| * Includes non-deductible costs 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
