10. Income tax

Income tax expense represents the sum of the tax currently payable and deferred tax. The activities of the group are subject to corporate income tax in several countries, depending on presence and activity. The applicable statutory tax rates vary between 12.5% and 41.0%. The different tax jurisdictions in which the group operates can cause the Effective Tax Rate (ETR) to differ from the Dutch corporate tax rate.

Excel

(€ in thousands)

2014

2013

Current tax

4,054

2,398

Deferred tax

–12,086

1,612

INCOME TAX (GAIN) / EXPENSE

–8,032

4,010

In 2914, the ETR was –54.9% compared to 16.7% last year. The reconciliation between the tax charge on the basis of the Dutch tax rate and the Effective Tax Rate is as follows:

Excel

2014

2013

Dutch tax rate

25.0%

25.0%

Higher weighted average statutory rate of group activities

9.8%

6.9%

Income exempted from tax

–26.2%

–20.8%

Non tax deductible costs

17.7%

15.7%

Utilisation of losses not previously capitalised

–19.6%

–17.3%

Effect of prior years' settlements and/or adjustments

–40.6%

–26.5%

Remeasurement of deferred tax

–25.6%

33.2%

Other

4.7%

0.5%

EFFECTIVE TAX RATE

–54.9%

16.7%

The income tax credited directly in equity in 2014 amounted to €6.9 million (2013: credit of €0.3 million).

Accounting policy

Current and deferred taxes are recognised as an expense or income in the profit and loss account, except when they relate to items credited or debited directly to equity. In this case, the tax is also recognised directly in equity, or where it arises from the initial accounting for a business combination.

The group's income tax expense is calculated using tax rates that have been enacted or substantively enacted at the balance sheet date.