BMW 2010 Annual Report Download - page 93

91 GROUP FINANCIAL STATEMENTS
in euro million 2010 2009
Current tax expense 1,430 338
Deferred tax income / expense 172 –135
Income taxes 1,602 203
in euro million 2010 2009
Income from investments 5 4
thereof from subsidiaries: euro 5 million (2008: euro 4 million)
Impairment losses on investments in subsidiaries –179 – 3
Income from reversal of impairmant losses on investments in subsidiaries 3 –
Result on investments –171 1
Losses and gains relating to financial instruments 96 245
Sundry other financial result 96 245
Other financial result – 75 246
14
13
Other financial result
Income taxes
Taxes on income comprise the following:
The result on investments in 2010 arose mainly as a re-
sult of the impairment loss recognised on the investment
in the Husqvarna Group.
Deferred taxes are recognised on temporary differences
between the carrying amount of assets and liabilities
forIFRS purposes and their tax bases. The deferred tax
expense of euro 172 million (2009: deferred tax income
of euro 135 million) isstated after offsetting deferred
tax
income of euro 212million (2009: deferred tax ex-
pense of euro 228 million) arising on new or reversed
temporary differences. Deferred taxes are computed
using enacted or planned tax rates which are expected
to
apply in the relevant national jurisdictions when the
amounts are recovered. A uniform corporation tax rate
of 15.0% applies in Germany. After taking account of
The positive sundry other financial result was largely at-
tributable to fair value gains on stand-alone commodities
derivatives.
the average multiplier rate (Hebesatz) of 410.0% for
mu-
nicipal trade tax and the solidarity charge of 5.5%, the
overall tax rate for BMW companies in Germany is
30.2%, unchanged from the previous year. Thetax rates
for companies outside Germany also remained in an
unchanged range ofbetween 12.5% and 46.9%. A valua-
tion allowance is recognised on deferred
tax assets when
recoverability is uncertain. In determining the level of
the valuation allowance, all positive and negative factors
concerning the likely existence of sufficient taxable profit
in the future are taken into account. These estimates can
change depending
on the actual course of events.