Annual Report 2017

11. Income Tax

in thousands of EUR

2017

2016

Current income tax

120,606

111,307

Deferred income tax

- 19,551

-15,532

Charge in Income Statement

101,055

95,775

The reconciliation between the computed weighted average rate of income tax expense, which is generally applicable to GrandVision companies, and the actual rate of taxation is as follows:

in thousands of EUR

2017

%

2016

%

Result before tax

350,022

100.0%

347,728

100.0%

Computed weighted average tax rate

96,715

27.6%

94,639

27.2%

(Exempt income)/expenses not deductible for tax purposes

- 412

-0.1%

6,845

2.0%

Incentive tax credits

- 9,089

-2.6%

-8,911

-2.6%

Effect of (de)recognition of tax losses

23,651

6.8%

9,152

2.6%

Changes in tax rate

- 5,754

-1.6%

-7,122

-2.0%

(Over)/Under provided in prior years

- 4,056

-1.2%

1,172

0.3%

Tax charge

101,055

28.9%

95,775

27.5%

The weighted average applicable tax rate amounts to 27.6% (2016: 27.2%). The effective tax rate for the Group is 28.9% (2016: 27.5%).

The changes in tax rate in 2017 relate mainly to France, the United Kingdom and Colombia. The changes in tax rate in 2016 were mainly in France.