Note
| For the period 01.01.2016 - 31.12.2016 | For the period 01.01.2015 - 31.12.2015* restated | |
|---|---|---|
| Profit before tax | 491 116 | 828 860 |
| Tax using the Group’s domestic tax rate | 93 312 | 157 484 |
| Effect of tax rates in foreign jurisdictions | (4 458) | (243) |
| Tax exempt income (+/-) | (4 779) | (2 451) |
| Non-deductible expenses (+/-) | 15 023 | 11 717 |
| Tax effect of previously unrecognised tax losses(+/-) | (604) | (501) |
| Recognition of investment tax credits (+/-) | (2 119) | (14 129) |
| Change in recognised deductible temporary differences (+/-) | 8 550 | 4 515 |
| Other(+/-) | 11 039 | (5 751) |
| Tax expense in the statement of profit or loss | 115 964 | 150 641 |
| Effective tax rate | 23.6 % | 18.2% |
* Financial information restated as presented in point 2.3 of the notes to the consolidated financial statements.
The effective tax rate in 2016 of 23.6% results mainly from non-deductible expenses and from not recognising the deferred tax assets on deductible temporary differences and tax losses by certain Group entities, for which the realisation of differences and tax losses is not considered sufficiently probable. The effective tax rate in 2015 of 18.2% results from tax adjustments for prior years and recognition of deferred tax assets on investment tax credit resulting from Grupa Azoty PUŁAWY’s activities in the special economic zone.