46 Taxation
Taxation by type
| Netherlands | International | Total | |||||||
|---|---|---|---|---|---|---|---|---|---|
| 2007 | 2006 | 2005 | 2007 | 2006 | 2005 | 2007 | 2006 | 2005 | |
| Current taxation | 112 | 469 | 855 | 963 | 970 | 388 | 1,075 | 1,439 | 1,243 |
| Deferred taxation | 144 | 95 | –2 | 316 | 373 | 138 | 460 | 468 | 136 |
| 256 | 564 | 853 | 1,279 | 1,343 | 526 | 1,535 | 1,907 | 1,379 | |
Reconciliation of the weighted average statutory income tax rate to ING Group’s effective
income tax rate
| 2007 | 2006 | 2005 | |
|---|---|---|---|
| Result before taxation | 11,043 | 9,940 | 8,894 |
| Weighted average statutory tax rate | 28.7% | 30.9% | 31.8% |
| Weighted average statutory tax amount | 3,169 | 3,071 | 2,831 |
| Associates exemption | –814 | –255 | –386 |
| Other income not subject to tax | –577 | –336 | –222 |
| Expenses not deductible for tax purposes | 93 | 121 | 37 |
| Impact on deferred tax from change in tax rates | –9 | –170 | –2 |
| Deferred tax benefit from previously unrecognised amounts | –64 | –30 | –413 |
| Current tax benefit from previously unrecognised amounts | –222 | –447 | –391 |
| Write down/reversal of deferred tax assets | 8 | –6 | 2 |
| Adjustment to prior periods | –49 | –41 | –77 |
| Effective tax amount | 1,535 | 1,907 | 1,379 |
| Effective tax rate | 13.9% | 19.2% | 15.5% |
As of 2007, the reconciliation is prepared on the basis of the weighted average statutory tax rate. Until 2006 , it was prepared on the basis of the Dutch statutory tax rate for the entire Group. The 2006 and 2005 comparatives have been restated to reflect this change.
The effect of the change in tax rates in 2006 is mainly attributable to a reduction in the tax rate in the Netherlands from 29.6% to 25.5%.
Tax benefits from previously unrecognised amounts includes releases of tax provisions resulting from settlements with tax authorities. Significant amounts included relate to closing of tax audits in the main tax jurisdictions of the Group.
