Note 29 Tax
Current tax expense
Movement in deferred taxes
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
Enacted corporate income tax rate in the Netherlands
Substantial holding privilege
Change in corporate income tax rate
Losses not accounted for
Other permanent differences
Effective corporate income tax rate
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.