Annual Report 2021
Financial statements
Income tax (expense) / gain

See accounting policy NN.

Income tax (expense) / gain
Current taxes for the current period-188-149
Current taxes referring to previous periods2617
Total current tax-162-132
Deferred taxes arising from current period-105-65
Deferred taxes arising from changes in tax rates-325
Total deferred tax-108-40
Income tax (expense) / gain-270-172

The expected income tax expense is determined by applying the tax rate in the Netherlands to the result before tax. In 2021, this rate was 25.0% (2020: 25.0%). The enacted tax rate for 2022 will be 25.8%.

The table below shows a reconciliation of the expected income tax expense with the actual income tax expense.

Reconciliation of expected income tax (expense) / gain with the actual income tax (expense) / gain
Result before tax1,209829
Current tax rates-25.0%-25.0%
Expected income tax expense-302-207
Effects of:
Tax-exempt interest33
Tax on interest on other equity instruments1212
Tax-exempt dividends54
Tax-exempt capital gains125
Changes in impairments-2-30
Adjustments for taxes due on previous financial years515
Other effects-326
Total Income tax (expense) / gain-270-172

The result is almost entirely earned and taxable in the Netherlands.

The effective income tax rate is 22.4% (2020: 20.7%).

The effect of changes in the enacted tax rate are included in the other effects (2020: mainly concerns the release of the in 2019 proposed tax rate of 21.7%).