Note 29 Tax
€ million | 2018 | 2017 |
Current tax expense | -74 | -54 |
Movement in deferred tax | -45 | -14 |
Total | -119 | -68 |
The recognised tax expense of €74 million is made up of tax charges of €71 million for 2018 and an adjustment of €3 million relating to prior years.
The corporate income tax charge on the taxable profit of the Alliander N.V. tax group for 2018 amounts to €65 million. This is the balance of the calculated corporate income tax on the profit for 2018 (€69 million) and the calculated corporate income tax on movements in balance sheet items recognised directly in equity (€4 million tax credit).
The change in deferred tax, which was down by €45 million, is the net effect of a change in deferred tax assets (€46 million) as well as in deferred tax liabilities (€1 million).
The table below provides a reconciliation between the corporate income tax rate in the Netherlands and the effective tax rate:
Reconciliation of effective corporate income tax rate
% | 2018 | 2017 |
Enacted corporate income tax rate in the Netherlands | 25.0 | 25.0 |
Impact of: | ||
Substantial-holding privilege | -5.8 | - |
Change in corporate income tax rate | 6.5 | - |
Losses not accounted for | 0.5 | 1.4 |
Other permanent differences | 0.3 | -0.7 |
Effective corporate income tax rate | 26.5 | 25.7 |
The effective tax rate is the tax burden expressed as a percentage of the profit before tax excluding the profits after tax from associates and joint ventures. The effective tax rate in 2018 amounted to 26.5% (2017: 25.7%). The difference compared with the standard tax rate of 25% is mainly due to the applicability of the substantial-holding privilege (downward effect of 5.8%) and the effect of the changes in the rate of corporate income tax (upward effect of 6.5%). The upward effect of permanent differences (0.3%) concerns various non-deductible expenses. The unrecognised tax losses of our entities outside the Netherlands also influence the effective tax rate (upward effect of 0.5%).