Hexagon Annual Report 2019

NOTE 9 TAX (NOK 1 000) 2019 2018 Income tax payable 35 026 33 995 Change in deferred tax 11 084 5 440 Total tax expense 46 111 39 436 TAX EXPENSE FOR THE YEAR CONSISTS OF (NOK 1 000) 2019 2018 Profit before tax 209 773 162 621 Permanent differences -179 13 229 Change in temporary differences -50 383 -28 044 Use of loss carryforwards 0 0 Tax base for the year 159 211 147 806 CALCULATION OF TAX BASE FOR THE YEAR Received group contributions of NOK 83 358 thousand (NOK 141 555 thousand) have been entered as income on investments in subsidiaries and included in the pre-tax profit. (NOK 1 000) 2019 2018 Receivables 156 696 103 121 Non-current assets -593 -881 Provisions -4 753 -1 273 Pensions 0 0 Loss carryforwards 0 0 Total 151 350 100 967 DEFERRED TAX 22% 33 297 22 213 OVERVIEW OF TEMPORARY DIFFERENCES (NOK 1 000) 2019 2018 22% of profit before tax (23% in 2018) 46 150 37 403 Permanent differences 22% (23% in 2018) -39 3 043 Gains and losses/sale of financial assets 22% (23% in 2018) 0 0 Correction for previous year 0 0 Effect of change in tax rate 0 -1 010 Calculated tax expense 46 111 39 436 Effective tax rate 1) 22.0 % 24.3 % 1) Tax expense in relation to profit before tax. WHY TAX EXPENSE FOR THE YEAR DOES NOT AMOUNT TO 22% OF PROFIT BEFORE TAX From the 2019 financial year, the tax rate on general income in Norway has been reduced to 22% (23% in 2018). Deferred tax and deferred tax assets as of 31 December 2018 are calculated using a tax rate of 22%. The effect on tax expense for the year was NOK -1 010 thousand. 77 165 2019 AT A GLANCE FROM THE BOARD ROOM FINANCIAL STATEMENTS