|
2019 |
2018 |
| Profit before tax |
5,352 |
7,110 |
| Tax expense by the valid tax rate in Poland (19%) |
(1,017) |
(1,351) |
| Differences between tax rates |
69 |
(35) |
| Lithuania (15%) |
16 |
6 |
| Germany (29%, 48%) |
(27) |
(43) |
| Canada (27%) |
80 |
2 |
| Deferred tax provision on capital gains in ORLEN Capital |
(22) |
(112) |
| Investments accounted for under equity method |
26 |
24 |
| Energy rights free of charge |
(15) |
– |
| Shortages of materials in external warehouses |
(29) |
– |
| Other |
(66) |
(32) |
| Tax expense |
(1,054) |
(1,506) |
| Effective tax rate |
20% |
21% |
As at 31 December 2019 and as at 31 December 2018, the Group had unsettled tax losses in the total amount of PLN 1,251 million and PLN 1,057 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.