P6. Income taxes

Tax items recognized in comprehensive income

Tax items recognized in comprehensive income were distributed as follows.

SEK in millions

Jan–Dec 2015

Jan–Dec 2014

Tax items recognized in net income

   

Current tax expense relating to current year

-1,189

-200

Underprovided or overprovided current tax expense in prior years

-6

-76

Deferred tax expense originated or reversed in current year

1

45

Total tax expense recognized in net income

-1,194

-231

Tax items recognized in other comprehensive income

   

Current tax relating to current year

6

Deferred tax originated or reversed in current year

-136

-25

Total tax recognized in other comprehensive income

-130

-25

Pre-tax income was SEK 12,879 million in 2015 and SEK 10,243 million in 2014. The difference between the nominal Swedish income tax rate and the effective tax rate comprise the following components.

Percent

Jan–Dec 2015

Jan–Dec 2014

Swedish income tax rate

22.0

22.0

Underprovided or overprovided current tax expense in prior years

0.1

0.8

Recognition of previously unrecognized deferred taxes

-0.5

Non-deductible expenses

0.8

22.2

Tax-exempt income

-13.6

-42.2

Effective tax rate in net income

9.3

2.3

Non-deductible expenses in 2014 consist mainly of write-downs of subsidiaries. In 2015 and 2014, tax-exempt income consisted primarily of dividends from subsidiaries.

Deferred tax assets and liabilities

Deferred tax assets and liabilities changed as follows.

SEK in millions

Jan–Dec 2015

Jan–Dec 2014

Deferred tax assets

   

Carrying value, opening balance

125

171

Comprehensive income period change

1

45

Reclassification from current tax

0

-62

Offset tax liabilities/assets

-126

-29

Carrying value, closing balance

0

125

Deferred tax liabilities

   

Carrying value, opening balance

Comprehensive income period change

136

25

Reclassifications from current tax

4

Offset tax liabilities/assets

-126

-29

Carrying value, closing balance

10

Temporary differences in deferred tax assets were as follows.

SEK in millions

Jan–Dec 2015

Jan–Dec 2014

Deferred tax assets

   

Delayed expenses for provisions

126

154

Offset deferred tax liabilities/assets

-126

-29

Total deferred tax assets

125

Deferred tax liabilities

   

Fair value adjustments, cash-flow hedges and assets available-for-sale

136

29

Offset deferred tax liabilities/assets

-126

-29

Total deferred tax liabilities

10

Net deferred tax assets

-10

125

In 2015 and 2014, there were no accumulated non-expiring tax loss carry-forwards or unrecognized deferred tax assets. As of December 31, 2015 and 2014, the unrecognized deferred tax liability in untaxed reserves amounted to SEK 2,787 million and SEK 2,525 million, respectively.

Untaxed reserves and appropriations

As of December 31, 2015 and 2014, untaxed reserves in the balance sheet consisted of profit equalization reserves totaling SEK 12,666 million and SEK 11,476 million, respectively.

SEK in millions

Jan–Dec 2015

Jan–Dec 2014

Change in profit equalization reserves

-1,190

-230

Group contributions received

16,395

15,418

Group contributions paid

-8,829

-7,438

Net effect on income

6,376

7,750

© TeliaSonera 2015
In the event of any differences between this online version of the Annual and sustainability report and the printed version, the printed version shall prevail.