Income taxes

The components of income tax expense for the years ended 31 December 2012, 2011 and 2010 were as follows:


  2012 2011 2010
Current income tax expense      
Income tax for the year (7,415) (8,715) (9,625)
Adjustments of the current income tax for previous years 201 (41) 41
Total current income tax for the year (7,214) (8,756) (9,584)
Deferred tax expense      
Origination and reversal of temporary differences (4,991) (1,679) (762)
Changes in unused tax losses 3,412 (332) 262
Total deferred income tax (1,579) (2,011) (500)
Total income tax expense for the year (8,793) (10,767) (10,084)

A reconciliation of the theoretical tax charge to the actual income tax charge is as follows:


  2012 2011 2010
Profit before tax 44,033 53,295 40,513
Statutory income tax rate 20% 20% 20%
Theoretical tax charge at statutory income tax rate (8,807) (10,659) (8,103)
Adjustments of the current income tax for previous years 201 (41) 41
Non-deductible expenses and non-taxable income (1,791) 870 (2,225)
Tax on intragroup dividend income (36) (44) (84)
Changes in unrecognized deferred tax assets 1,584 (1,023) 262
Tax exemptions 56 57 60
Other - 73 (35)
Total actual income tax (8,793) (10,767) (10,084)
Effective tax rate, % 19.97% 20.20% 24.89%

Non-deductible expenses and non-taxable income comprised the following amounts for the year ended 31 December 2012, 2011 and 2010:


  2012 2011 2010
Effect of employee benefits curtailment - 1,023 -
Effect of business combination achieved in several stages - 388 -
Reversal/(accrual) of impairment loss - 665 (665)
Other (1,791) (1,206) (1,560)
Total non-deductible expenses and non-taxable income (1,791) 870 (2,225)

Other non-deductible expenses and non-taxable income include income connected with depreciation of certain property, plant and equipment, expenses within share-based employee motivation program, promotional and sponsorship expenditures, travel expenditures in excess of certain statutory allowances, other expenses and value added tax accrued on free-of-charge services.

The components of net deferred tax assets and liabilities as at 31 December 2012, 2011 and 2010, and the respective movements during 2012, 2011 and 2010 were as follows:


    Movement during 2012 recognized in  
  Balance as at 1 January 2012 Acquisition through business combinations Equity Other comprehensive income Profit/or loss for the year Balance as at 31 December 2012
Tax effects of future tax deductible items            
Property, plant and equipment 454 - - - (177) 277
Unused tax losses 384 - - - 3,412 3,796
Trade and other accounts receivable 240 5 - - (154) 91
Inventories 52 - - - 197 249
Investments - - - - 633 633
Employee benefits 1,984 - - - 26 2,010
Loans and  borrowings 384 - - - (384) -
Other non-current liabilities 554 - - - (446) 108
Accounts payable, provisions and accrued expenses 1,546 - - - 966 2,512
Other 418 9 - - (143) 284
Gross deferred tax asset 6,016 14 - - 3,930 9,960
Property, plant and equipment (17,847) (36) 2 - (4,234) (22,115)
Intangible assets (6,321) (5) - - 1,090 (5,236)
Investments (376) - 548 228 (1,547) (1,147)
Accounts payable, provisions and accrued expenses (240) (31) 3 - 93 (175)
Trade and other accounts receivable (679) - - - (827) (1,506)
Loans and borrowings (4) - - - (213) (217)
Other (235) - - - 129 (106)
Gross deferred tax liability (25,702) (72) 553 228 (5,509) (30,502)
Net deferred tax liability (19,686) (58) 553 228 (1,579) (20,542)

  Movement during 2011 recognized in  
  Balance as at 1 January 2011 Acquisition through business combinations Equity Other comprehensive income Profit/or loss for the year Balance as at 31 December 2011
Tax effects of future tax deductible items            
Property, plant and equipment 252 9 - - 193 454
Unused tax losses 240 476 - - (332) 384
Trade and other accounts receivable 201 4 - - 35 240
Inventories 9 1 - - 42 52
Investments 469 1 - - (470) -
Employee benefits 1,880 - - - 104 1,984
Loans and  borrowings 1,311 - - - (927) 384
Other non-current liabilities 85 - - - 469 554
Accounts payable, provisions and accrued expenses 1,245 19 - - 282 1,546
Other 782 30 - - (394) 418
Gross deferred tax asset 6,474 540 - - (998) 6,016
Tax effects of future taxable items:            
Property, plant and equipment (15,049) (788) - - (2,010) (17,847)
Intangible assets (3,487) (3,621) - - 787 (6,321)
Investments (627) - 14 (3) 240 (376)
Accounts payable, provisions and accrued expenses (522) (55) - - 337 (240)
Trade and other accounts receivable (410) (3) - - (266) (679)
Loans and borrowings (13) - - - 9 (4)
Other (119) (6) - - (110) (235)
Gross deferred tax liability (20,227) (4,473) 14 (3) (1,013) (25,702)
Net deferred tax liability (13,753) (3,933) 14 (3) (2,011) (19,686)

  Movement during 2010 recognized in  
  Balance as at 1 January 2010 Acquisition through business combinations Equity Other comprehensive income Profit/or loss for the year Balance as at 31 December 2010
Tax effects of future tax deductible items            
Property, plant and equipment - 252 - - - 252
Unused tax losses - - - - 240 240
Trade and other accounts receivable 58 155 - - (12) 201
Inventories 15 - - - (6) 9
Investments 234 - - - 235 469
Employee benefits 1,806 - - - 74 1,880
Loans and borrowings 1,824 - - - (513) 1,311
Other non-current liabilities 92 - - - (7) 85
Accounts payable, provisions and accrued expenses 1,287 - - - (42) 1,245
Other 550 - - - 232 782
Gross deferred tax asset 5,866 407 - - 201 6,474
Tax effects of future taxable items:            
Property, plant and equipment (14,264) (684) - - (101) (15,049)
Intangible assets (1,879) (1,970) - - 362 (3,487)
Investments (98) - (9) (32) (488) (627)
Accounts payable, provisions and accrued expenses (347) - - - (175) (522)
Trade and other accounts receivable (165) - - - (245) (410)
Loans and borrowings (32) - - - 19 (13)
Other (12) (34) - - (73) (119)
Gross deferred tax liability (16,797) (2,688) (9) (32) (701) (20,227)
Net deferred tax liability (10,931) (2,281) (9) (32) (500) (13,753)

Taxable temporary differences associated with investments in subsidiaries for which no deferred tax liabilities were recognized in the accompanying consolidated statements of financial position as at 31 December 2012, 2011 and 2010 amounted to 17,082, 20,947 and 16,674, respectively. Deductible temporary differences associated with investments in subsidiaries for which no deferred tax assets were recognized in the accompanying consolidated statements of financial position as at 31 December 2012, 2011 and 2010 amounted to 2,362, 12,057 and 8,686, respectively.

Deductible temporary differences for which no deferred tax assets were recognized in the accompanying consolidated statements of financial position as at 31 December 2012, 2011 and 2010 amounted to 5,263, 14,819 and 9,705, respectively, of which unused tax losses with expiry date from 2014 to 2022 amounted to 4,359, 13,571 and 8,468 for 2012, 2011 and 2010, respectively.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and the deferred income tax assets and deferred income tax liabilities relate to the income taxes levied by the same fiscal authority on the same taxable entity.

The consolidated statement of comprehensive income for 2012, 2011 and 2010 includes tax expense in respect of following items of other comprehensive income:


  2012 2011 2010
Change in fair value of available-for-sale financial assets 228 (3) (32)

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