13.13.1. RECONCILIATION OF EFFECTIVE TAX RATE
Reconciliationof effective tax rate
|
|
2020 |
2019 |
|
Profit before tax |
2,856 |
5,352 |
|
Tax expense by the valid tax rate in Poland (19%) |
(543) |
(1,017) |
|
Differences between tax rates |
13 |
69 |
|
Lithuania (15%) |
(28) |
16 |
|
Germany (30%) |
(36) |
(27) |
|
Canada (23%) |
81 |
80 |
|
Malta (35%) |
(4) |
- |
|
Gain on bargain purchase |
772 |
- |
|
Impairment allowances of property, plant and equipment and intangible assets |
(328) |
- |
|
Energy rights free of charge |
(62) |
(15) |
|
Donations |
(37) |
(8) |
|
Investments accounted for under equity method |
28 |
26 |
|
Fee for implementation of the Effort Sharing Decision (ESD) |
(30) |
- |
|
Deferred tax provision on capital gains in ORLEN Capital |
43 |
(22) |
|
Shortages of materials in external warehouses |
- |
(29) |
|
Other |
113 |
(58) |
|
Tax expense |
(31) |
(1,054) |
|
Effective tax rate |
1% |
20% |
As at 31 December 2020 and as at 31 December 2019, the Group had unsettled tax losses in the total amount of PLN 663 million and PLN 1,251 million, respectively mainly relating to the ORLEN Upstream Group, for which no deferred tax asset was recognised due to the lack of certainty regarding possible utilization of those losses in the future.
