26. Income Tax
About this
Report
Chairman's
Foreword
Corporate
Management Report Appendices Governance
Consolidated Financial Company Financial
Statements Statements
Banks operating in the Netherlands on October 1 st of the current
year are required to pay bank tax. There are two rates of bank tax
applicable: A rate of 0.044% for current liabilities and a rate of
0.022% for long-term liabilities, based on the balance on
December 2017. In 2018, Rabobank was charged a total of
EUR 120 million (2017: EUR 136 million).
In 2018, the bank levy in Ireland amounted to EUR 20 million
(2017: EUR 7 million). In 2018, the bank levy in Belgium amounted
to EUR 11 million (2017: EUR 11 million).
On January 1, 2016 the European Single Resolution Fund (SRF)
was set up. This fund has been established to improve the
effectiveness of resolution instruments. Banks and investment
firms that are in the scope of the SRM-regulation are obliged to
contribute to the SRF. In 2018, the contribution to the Single
Resolution Fund amounted to EUR 161 million (2017:
EUR 152 million).
Per the end of 2015, the new pre-funded Deposit Guarantee
Scheme was introduced. As of 2016, banks have to pay a premium
on a quarterly basis. Target size of the scheme is 0.8% of total
guaranteed deposits of all banks together. In 2018, the
contribution to the Deposit Guarantee Scheme amounted to
EUR 116 million (2017: EUR 140 million).
The major components of the income tax are included below.
Amounts in millions of euros
2018
2017
Income tax
Reporting period
371
343
Adjustments of previous years
(3)
(15)
Deferred tax
2
(53)
Total income tax
370
275
Effective tax rate
11.2%
9.5%
Applicable tax rate
25.0%
25.0%
The effective tax rate differs from the applicable tax rate in 2018
mainly because of the net inclusion of income from group entities
and the partial deduction of interest payments on Capital
Securities.
Annual Report 2018 - Company Financial Statements
233
