Toyota 2005 Annual Report Download - page 99

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS >97
The provision for income taxes consists of the following:
U.S. dollars
Yen in millions in millions
For the year
For the years ended March 31, ended March 31,
2003 2004 2005 2005
Current income tax expense:
Parent company and domestic subsidiaries................................ ¥497,613 ¥404,672 ¥376,845 $3,509
Foreign subsidiaries...................................................................... 93,674 155,804 196,354 1,828
Total current ............................................................................ 591,287 560,476 573,199 5,337
Deferred income tax expense (benefit):
Parent company and domestic subsidiaries................................ (102,276) 77,970 34,820 324
Foreign subsidiaries...................................................................... 28,003 42,858 49,891 465
Total deferred........................................................................... (74,273) 120,828 84,711 789
Total provision......................................................................... ¥517,014 ¥681,304 ¥657,910 $6,126
Toyota is subject to a number of different income taxes
which, in the aggregate, indicate a statutory rate in Japan
of approximately 41.3% in the years ended March 31,
2003 and 2004. Due to changes in Japanese income tax
regulations, effective April 1, 2004, the statutory rate was
reduced to approximately 40.2%, and such rate was also
used to calculate the future expected tax effects of
temporary differences, which are expected to be realized
on and after April 1, 2005. Reconciliation of the differ-
ences between the statutory tax rate and the effective
income tax rate is as follows:
For the years ended March, 31
2003 2004 2005
Statutory tax rate ................................................................................................................... 41.3% 41.3% 40.2%
Increase (reduction) in taxes resulting from:
Non-deductible expenses.................................................................................................. 0.7 0.5 0.3
Tax on equity earnings in affiliated companies............................................................... 1.6 1.7 1.8
Valuation allowance.......................................................................................................... 1.3 (0.9) (0.1)
Tax credits ......................................................................................................................... (1.9) (3.5) (3.4)
Changes in tax rate resulting from enactment of income tax regulations ..................... 0.6 0.6 —
Other.................................................................................................................................. (1.5) (1.1) (1.3)
Effective income tax rate ....................................................................................................... 42.1% 38.6% 37.5%
15. OTHER PAYABLES
Other payables are mainly related to purchases of property, plant and equipment and non-manufacturing purchases.
16. INCOME TAXES
The components of income before income taxes comprise the following:
U.S. dollars
Yen in millions in millions
For the year
For the years ended March 31, ended March 31,
2003 2004 2005 2005
Income before income taxes:
Parent company and domestic subsidiaries................................ ¥ 803,594 ¥1,104,719 ¥ 946,626 $ 8,815
Foreign subsidiaries...................................................................... 423,058 661,074 808,011 7,524
¥1,226,652 ¥1,765,793 ¥1,754,637 $16,339