Cloudberry Annual report 2022 Financial statements 130 Note 15 Income tax expense Accounting principle Income tax is calculated in accordance with ordinary tax rules and by applying the adopted tax rate. The tax expense in the statement of comprehensive income comprises taxes payable and changes in deferred tax liabilities and deferred tax assets. Taxes payable are calculated on the basis of the taxable income for the year. Deferred tax liabilities and deferred tax assets are calculated on the basis of temporary differences between the accounting and tax values and the tax effect of losses carried forward. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Deferred tax assets are recognised to the extent that it is probable that they will be utilised. Tax related to items recognised in other comprehensive income is also recognised in other comprehensive income, while tax related to equity transactions is recognised in equity. Tax expense and deferred tax The table below show the tax expense in the income statement NOK million 2022 2021 Tax expense in the income statement Income tax payable 1 - Change in deferred income tax (1) 1 Tax expense in the income statement - 1 Reconsiliation of nominal tax rate and effective tax rate Profit before income tax 122 (64) Nominal tax rate 22% 22% Expected tax expense (27) 14 Effect on taxes of: Permanent differences 34 (2) Not regognized tax asset related to tax losses carried forward (7) (12) Changes related to deferred tax on excess values (3) 1 Changes related to other deferred tax 2 - Tax expense in the income statement - 1 The appropriate tax rate in Norway and Sweden is 22% and 20,6% respectively.
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