Note 19 - Income tax

Deferred tax in the income statement consists of the following items:

Income tax on the Group's income before tax differs from the theoretical amount which would have arisen upon use of a weighted average tax rate for the income in the consolidated companies in accordance with the following:

Tax rate

The Parent Company’s applicable income tax rate is 22% (2012: 26.3%). As from January 1, 2013, the tax rate in Sweden (the Parent Company) was reduced to 22%.

Temporary differences

Temporary differences exist in those cases where the reported values and tax values of assets or liabilities differ. Changes are in deferred tax assets and liabilities during the year, without consideration being given to set-offs made under the same tax law.

Deferred tax assets

The reported effect of changed tax rates relates to the Swedish operations; see also "tax rate" above. Loss carry-forwards relate essentially to completed restructuring.As regards the valuation of loss carry-forwards, see Note 4.1. It is the management's assessment that the implemented restructuring measures in the future will lead to taxable surpluses against which loss carry-forwards might be utilized. 

Deferred tax liabilities

"Other"  includes deferred tax on pensions.

The deferred tax is valued in accordance with the applicable tax rate in each country.

Deferred tax assets and liabilities are set-off when there is a legal right of set-off for the relevant tax assets and liabilities and when deferred taxes relate to the same tax authority. No set-off has taken place.

Reporting of expiration dates:

The net change regarding deferred taxes is as follows:

Tax regarding items reported directly against shareholders' equity 

Deferred taxes reported in shareholders’ equity during the year amount to SEK 0 m (2012: SEK 0 m) in both the Group and the Parent Company.