Income taxes: 55 million (2015: 77)
Accounting policies The tax expense for the period comprises current and deferred tax. Tax is recognised in the income statement, except to the extent that it relates to items recognised directly in other comprehensive income. The amount of income tax included in the income statement is determined in accordance with the rules established by the taxation authorities, based on which income taxes are payable or recoverable.
Income taxes (in € millions) Year ended at 31 December
2016
2015
54
79
1
(2)
Total income taxes
55
77
Income taxes paid
80
105
Current tax expense Changes in deferred taxes
The difference between the total income taxes in the income statement and the current tax expense is due to temporary differences. These differences are recognised as deferred tax assets or deferred tax liabilities, see note 3.7 to the consolidated financial statements. In 2016, the income taxes paid relate almost completely to income taxes paid in the Netherlands and include payments related to prior years. Effective income tax rate (in percentages) Year ended at 31 December
2016
2015
Dutch statutory income tax rate
25.0
25.0
Adjustment regarding statutory income tax rates other countries
(0.7)
(0.1)
24.3
24.9
Non and partly deductible costs
1.3
0.8
Exempt income
0.1
0.2
Other
3.2
3.9
28.9
29.8
Weighted average statutory tax rate Tax effects of:
Effective income tax rate - before impact of stake TNT Express Impact of stake TNT Express
(12.5)
(0.2)
Effective income tax rate
16.4
29.6
The line 'Non and partly deductible costs' mainly relates to the non deductible treatment of our share-based payments, non deductible costs relating to subsidiaries and of the so-called mixed expenses (e.g., meals, entertainment). The line 'Exempt income' relates to the non-taxable treatment of our results from joint ventures and associates (mainly Postkantoren/Bruna, associate Whistl in the UK and our German joint ventures). The line ‘Other’ consists mainly of the combined impact of irrecoverable tax losses for which no deferred tax assets could be recognised (2.3%) and updates to tax positions (0.8%). The impact of the stake in TNT Express relates to the gain from the sale of the stake in TNT Express of €145 million (2015: tax-exempt dividend income 2). Earnings per ordinary share: 63.1 eurocents (2015: 41.5)
Accounting policies PostNL presents (diluted) earnings per share (EPS) for its ordinary shares. EPS is calculated by dividing the profit or loss attributable to the equity holders of the parent by the weighted average number of ordinary shares outstanding during the period. Diluted EPS is calculated by dividing the profit or loss attributable to the equity holders of the parent by the weighted average number of ordinary shares outstanding, including the effects for dilution of ordinary shares following the obligations to employees under existing share plans.
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