7.6.12Income tax expense
Income tax (expense) / gain
| | 2023 | 2022 |
|---|---|---|
| Current taxes for the current period | -136 | 39 |
| Current taxes referring to previous periods | -6 | 9 |
| Total current tax | -142 | 47 |
| | | |
| Deferred taxes arising from current period | -161 | 559 |
| Total deferred tax | -161 | 559 |
| | | |
| Total income tax (expense) / gain | -303 | 606 |
The expected income tax expense is determined by applying the tax rate in the Netherlands to the result before tax. In 2023, this rate was 25.8% (2022: 25.8%). The enacted tax rate for 2024 will be 25.8%.
Reconciliation of expected income tax (expense) / gain with the actual income tax (expense) / gain
| | 2023 | 2022 |
|---|---|---|
| Result before tax from continuing operations | 1,389 | -2,323 |
| Current tax rates | 25,8% | 25,8% |
| Expected income tax expense | -358 | 599 |
| | | |
| Effects of: | | |
| Tax on interest on other equity instruments | 12 | 12 |
| Tax-exempt dividend | 9 | 8 |
| Tax-exempt capital gains | 1 | -5 |
| Tax-exempt associates and joint ventures | 1 | - |
| Tax-exempt other income | 6 | - |
| Changes in impairments | -6 | -3 |
| Other effects | 32 | -6 |
| | | |
| Total income tax (expense) / gain | -303 | 606 |
The result is almost entirely earned and taxable in the Netherlands.
The effective income tax rate is 21.8% (2022: 26.1%). This decrease is mainly due to a negative tax result impact in relation to the tax exemption of capital gains.