AAK Annual Report 2018

88 Group Parent 2018 2017 2018 2017 Profit before taxes 1,829 1,666 2,122 -11 Weighted average tax rate based on the tax rates in each country -415 -400 -467 2 Tax effect of non-deductible expenses -20 -17 -3 -3 Tax effect of tax-exempt income 6 13 459 - Effect of deficit deductions not carried forward -57 -70 - - Effect of tax rate changes 14 35 - - Adjustment for current tax for previous years -17 -15 - 3 Tax expense -489 -454 -11 2 12 Note Tax expenses Deferred tax asset/provisions for deferred tax Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset the recognized tax assets and liabilities and when the deferred taxes refer to the same tax authority. The offset amounts are as follows: Group Parent Deferred tax assets 2018 2017 2018 2017 Tax loss carry-forwards 21 24 - - Non-current assets 1 29 - - Inventory -5 5 - - Current assets -15 12 3 3 Provisions 36 32 - - Non-current liabilities 0 0 - - Current liabilities 23 4 - - Offset - -33 - - At year-end 61 73 3 3 Group Parent Deferred tax liabilities 2018 2017 2018 2017 Non-current assets 477 512 - - Inventory 5 7 - - Current assets 16 11 - - Provisions -30 -23 - - Non-current liabilities 0 0 - - Current liabilities 22 -37 - - Offset - -33 - - At year-end 490 437 - -