Note 29 Tax

€ million

2019

2018

Current tax expense

-70

-74

Movement in deferred taxes

-6

-45

   

Total

-76

-119

The recognised tax expense of €70 million relates to the 2019 financial year.

The corporate income tax charge on the taxable profit of the Alliander N.V. tax group for 2019 amounts to €67 million. This is the balance of the calculated corporate income tax on the profit for 2019 (€70 million) and the calculated corporate income tax on movements in balance sheet items recognised directly in equity (€3 million tax credit).

The change in deferred tax, which was down by €6 million, is the net effect of a change in deferred tax assets (€7 million) as well as in deferred tax liabilities (€1 million).

The table below provides a reconciliation between the corporate income tax rate in the Netherlands and the effective tax rate:

Reconciliation of effective corporate income tax rate

%

2019

2018

Enacted corporate income tax rate in the Netherlands

25.0

25.0

Impact of:

  

Substantial holding privilege

-0.2

-5.8

Change in corporate income tax rate

-2.7

6.5

Losses not accounted for

1.2

0.5

Other permanent differences

-

0.3

   

Effective corporate income tax rate

23.3

26.5

The effective tax rate is the tax burden expressed as a percentage of the profit before tax excluding the profits after tax from associates and joint ventures. The effective tax rate in 2019 amounted to 23.3% (2018: 26.5%). The difference compared with the standard tax rate of 25% is mainly due to the effect of the change to the corporate income tax rate (downward effect of 2.7%) and the effect of unrecognised losses of our entities outside the Netherlands (upward effect of 1.2%). Aside from that, the substantial-holding privilege (downward effect of 0.2%) also impacts the effective tax rate.