The difference between the expected income tax expense and the income tax expense shown in the income statement can be explained as follows:
CHF 1,000
2021
2020
Profit before taxes
233,918
132,672
Expected Group tax rate
16%
16%
Expected income taxes
37,427
21,227
Non-deductible expenses
310
163
Tax-free income
–627
–585
Use of non-capitalised tax losses carried forward
–46
–11
Non-capitalisable tax losses for the period
85
127
Expenses/income which are taxed at a lower/higher tax rate
–3,829
–1,779
Impact of changes in tax rate on deferred tax items recognised
–148
–119
Tax effects for prior periods
65
54
Effective income tax charge
33,238
19,076
Effective tax rate
14%
14%
Deferred income taxes are calculated for each subsidiary using the local tax rates.
In 2021, the non-capitalised tax assets from losses carried forward amount to CHF 0.1 million (2020: CHF 0.1 million). Deferred income tax assets relate to deferred income taxes on temporary differences. Prepaid expenses include income taxes of CHF 11.5 million (2020: –). Accrued expenses include income taxes of CHF 6.1 million (2020: CHF 5.7 million).