Note 7.2 Effective tax rate
| For the period 01.01.2015 – 31.12.2015 |
For the period 01.01.2014 – 31.12.2014 |
|
|---|---|---|
| Profit before tax | 839 082 | 303 539 |
| Tax using the Group’s domestic tax rate | 159 426 | 57 672 |
| Effect of tax rates in foreign jurisdictions | (243) | (1 238) |
| Tax exempt income (+/-) | (2 451) | (1 100) |
| Non deductible expenses (+/-) | 11 717 | 10 976 |
| Tax effect of previously unrecognised tax losses(+/-) | (501) | (1 326) |
| Recognition of investment tax credits (-) | (14 129) | (27 083) |
| Change in recognised deductible temporary differences | 1 108 | – |
| Other(+/-) | (7 693) | (170) |
| Tax expense in the statement profit or loss | 147 234 | 37 731 |
| Effective tax rate | 17.50% | 12.40% |
The effective tax rate in 2015 of 17.5% results from tax adjustments for prior years and recognition of deferred tax assets on investment tax credit resulting from Grupa Azoty PUŁAWY’s activities in the special economic zone and based on the capital expenditures made in the special economic zone. The effective tax rate in 2014 of 12.4% results mainly from the recognition of deferred tax assets relating to the investment tax credit.
