KB prezent. angl - Komerční banka

134 ➔135
Consolidated Financial Statements
under IFRS
CZK million 2003 2002
Profit before tax (current tax rate) 12,890 11,575
Profit before income tax (special tax rate) 6 206
Profit before tax 12,896 11,781
Theoretical tax credit calculated at a tax rate of 31%, 25% and 15%, respectively 3,956 3,619
Income not taxable, primarily interest (1,826) (2,911)
Expenses not deductible for tax purposes 1,663 2,749
Unconsolidated tax losses 62 0
Other (17) (9)
Movement in deferred tax 386 (1,063)
Tax allowance (95) (32)
Consolidation effect 0 11
Income tax expense 4,129 2,364
Other tax expense (15% foreign dividend tax) 45 1
Prior period tax expense (9) 266
Withholding tax (15% dividend tax) 1 30
Total income tax expense 4,166 2,661
Effective tax rate (%) 32.30 22.25
The decrease in the prior period tax expense of CZK 9 million (2002: an increase of CZK 266 million) represents an increased tax
liability for the year ended 31 December 2002 (a decreased tax liability for the year ended 31 December 2001) reflected in the tax
returns filed in 2003 (2002).
The corporate tax rate for the year ended 31 December 2003 is 31 percent in the Czech Republic and 25 percent in Slovakia (2002:
31 percent and 25 percent, respectively). The Group’s tax liability is calculated based upon the accounting profit/(loss) taking into
account tax non-deductible expenses and tax exempt income or income subject to a final withholding tax rate.
The effective tax rate for the year ended 31 December 2002 was impacted by the Group having only recognised a deferred tax
liability in 2001 due to the uncertainty over the realisation of a deferred tax asset in future periods. The uncertainty of realisation
primarily related to the anticipated changes in legislation regarding banking provisions and securities.
Further information about deferred tax is presented in Note 31.
15. Distribution of profits/allocation of losses
The Group generated a net profit of CZK 8,669 million for the year ended 31 December 2003. Distribution of profits and allocation of
losses for the year ended 31 December 2003 will be approved by the general meetings of the Group companies.
16. Earnings/(loss) per share
Earnings per share of CZK 228.07 (2002: CZK 237.46 per share) have been calculated by dividing the net profit of CZK 8,669 million
(2002: CZK 9,026 million) by the number of shares in issue, that is 38,009,852.