Please activate JavaScript!
Please install Adobe Flash Player, click here for download

Allianz Annual Report 2013

D Consolidated Financial Statements 127 Consolidated Balance Sheets 128 Consolidated Income Statements 129 Consolidated Statements of Comprehensive Income 130 Consolidated Statements of Changes in Equity 131 Consolidated Statements of Cash Flows 134 Notes to the Consolidated Financial Statements Annual Report 2013    Allianz Group 203 The effective tax rate is determined on the basis of the effective income tax expenses on income before income taxes. Effective tax rate € mn 2013 2012 Income before income taxes 9,644 8,719 Expected income tax rate 29.9 % 29.5 % Expected income taxes 2,882 2,572 Trade tax and similar taxes 244 237 Net tax exempt income (185) (189) Effects of tax losses 9 2 Other effects 350 539 Income taxes 3,300 3,161 Effective tax rate 34.2 % 36.3 % In Italy, a decree law was issued in November 2013 and was converted into law by the Parliament in January 2014, which increased the cor- porate income tax rate (IRES) for bank and insurance companies by 8.5 % (from 27.5 % to 36 %). This tax rate increase is applied retroactively from beginning of 2013 and only for the financial year 2013. It resulted in an additional tax burden on the ­Allianz Group operations in Italy of € 119  mn. This one-off effect is included in the above table in the other effects. In the tax reconciliation for 2012, the other effects of € 539  mn include € 373  mn current and deferred taxes for prior years and a one- off tax expense from a tax law change in France of € 64  mn. For the year ended 31 December 2013, the write-down of deferred tax assets on tax losses carried forward resulted in deferred tax expenses of € 4  mn (2012: € –  mn). The non-recognition of deferred taxes on tax losses for the current fiscal year increased the tax expenses by € 17  mn (2012: € 52  mn). Due to the use of tax losses carried forward for which no deferred tax asset was recognized, the current income tax expenses decreased by € 3  mn (2012: € 8  mn). Deferred tax income of € 9  mn (2012: € 42  mn) resulted from the recognition of deferred tax assets on tax losses carried forward from earlier periods for which no deferred taxes had yet been recognized. The above men- tioned effects are shown in the reconciliation statement as “effects of tax losses”. The tax rates used in the calculation of the ­Allianz Group’s deferred taxes are the applicable national rates, which in 2013 ranged from 10.0 % to 40.0 %. Changes to tax rates already adopted on 31 De- cember 2013 are taken into account. Deferred tax assets on losses carried forward are recognized to the extent to which it is more likely than not that sufficient future taxable profits will be available for realization. Entities which suffered a tax loss in either the current or the preceding period recognized deferred tax assets in excess of deferred tax liabilities amounting to € 149 mn (2012: € 332 mn). Deferred tax assets and liabilities Deferred tax assets and liabilities € mn as of 31 December 2013 2012 Deferred tax assets Financial assets carried at fair value through income 23 34 Investments 3,112 2,871 Deferred acquisition costs 1,158 1,984 Other assets 1,363 1,184 Intangible assets 119 156 Tax losses carried forward 2,213 2,548 Insurance reserves 3,862 3,935 Pensions and similar obligations 3,317 3,364 Other liabilities 1,040 992 Total deferred tax assets 16,207 17,068 Non-recognition or valuation allowance for deferred tax assets on tax losses carried forward (652) (714) Effect of netting (14,047) (14,828) Net deferred tax assets 1,508 1,526 Deferred tax liabilities Financial assets carried at fair value through income 158 91 Investments 5,732 7,884 Deferred acquisition costs 4,335 4,371 Other assets 725 580 Intangible assets 400 381 Insurance reserves 2,691 2,420 Pensions and similar obligations 2,430 2,254 Other liabilities 754 882 Total deferred tax liabilities 17,225 18,863 Effect of netting (14,047) (14,828) Net deferred tax liabilities 3,178 4,035 Net deferred tax assets (liabilities) (1,670) (2,509) Taxabletemporarydifferencesassociatedwithinvestmentsin­Allianz Group companies, for which no deferred tax liabilities are recognized as the ­Allianz Group is able to control the timing of their reversal and which will not reverse in the foreseeable future, amount to € 757 mn (2012: € 520  mn). Deductible temporary differences arising from investments in ­Allianz Group companies, for which no deferred tax assets are recognized as it is not probable that they will reverse in the foreseeable future, amount to € 183 mn (2012: € 185 mn).

Pages Overview