The CPH Group’s expected income tax rate for the year under review amounted to 15.4 % (prior year: 13.9 %). This is the weighted average tax rate based on the results before taxes and individual tax rates for each Group company in the year under review. The change in the expected income tax rate is due to the profit/loss situation and to changes in the tax rates at the various Group companies.

The difference between the expected income tax expense and the income tax expense disclosed in the income statement is largely attributable in both the year under review and the prior year to the use of non-capitalized tax loss carry forwards (see also Note 15, Financial assets).

The calculation of deferred income taxes was based on expected local tax rates at individual Group companies, which averaged 13.0 % (prior year: 13.3 %).

Non-capitalized tax loss carry forwards decreased in the year under review from CHF 13.3 million to CHF 7.4 million, primarily due to their use. Of these, CHF 0.2 million expire within a year (prior year: CHF 1.4 million) and CHF 0.0 million are of indefinite duration (prior year: CHF 0.1 million).