Note 29 Tax

€ million



Current tax expense



Movement in deferred tax







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




Enacted corporate income tax rate in the Netherlands



Impact of:


Substantial-holding privilege



Change in corporate income tax rate



Losses not accounted for



Other permanent differences




Effective corporate income tax rate



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%).