Ársskýrsla Landsbankans - Landsbankinn

Notes to the Consolidated Financial Statements
33. Other operating expenses
2010 2009
Software licensing and other information technology costs 1,047 868
Real estate and fixtures 909 791
Advertising and marketing 433 355
Contribution to the Depositors' and Investors' Guarantee Fund 680 680
Audit and related services 173 116
Other professional services 889 613
Operating lease rentals 495 484
Other operating expenses 2,687 2,157
Total 7,312 6,064
Audit and related services 2010 2009
Audit of financial statement and audit related service 109 96
Review of interim financial statement 61 -
Other services 2 20
Total 173 116
34. Acquisition-related costs
2010 2009
Cost of acquisition of assets and liabilities from Landsbanki Íslands hf. 542 886
Claims on Landsbanki Íslands hf. which were written off due to a settlement - 158
Total 542 1,044
35. Income tax expense
Income tax is recognised based on the tax rates and tax laws enacted by the end of the period, according to which the domestic corporate income
tax rate was 18.0% (2009: 15.0%).
Income tax recognised in the income statement is specified as follows:
2010 2009
Current tax expense (1 (1,979) 979) (83)
Effect of increase in tax rate 164 295
Deferred tax expense (5,967) (827)
Total (7,782) (615)
Further information on deferred income tax is presented in Note 21. The tax on Group profits differs to the following extent from the amount that
would theoretically arise by the domestic corporate income tax rate:
2010
2009
Profit before tax 32,644 14,254
Tax on liabilities of financial institutions (400) -
Profit before income tax 32,244 14,254
Income tax calculated using the domestic corporate income tax rate 18.0% (5,804) 15.0% (2,138)
Effect of increase in tax rate (0.5%) 164 (2.1%) 296
Effect of different tax rates in other countries - - 0.3% (38)
Income not subject to tax (5.0%) 1,641 (9.0%) 1,289
Non-deductable expenses 6.4% (2,099) 0.8% (110)
Other 5.2% (1,684) (0.6%) 86
Effective income tax 24.1% (7,782) 4.3% (615)
NBI hf. Consolidated Financial Statements 2010 43
All amounts are in ISK million
Allar upphæðir eru í milljónum króna Ársreikningur 2010 143