11. Income tax expense
| In CHF’000 | Note | 2007 | 2006 |
|---|---|---|---|
| Current income tax | -18 863 | -15 536 | |
| Deferred income tax | 17 | 6 158 | 4 872 |
| Other taxes | -2 233 | -1 102 | |
| -14 938 | -11 766 |
Other taxes include non reimbursable withholding taxes.
The tax on the Group’s profit before tax differs from the theoretical amount that would arise using the weighted average tax rate applicable to profits of the consolidated companies as follows:
| In CHF’000 | 2007 | 2006 |
|---|---|---|
| Profit before taxes | 82 386 | 150 296 |
| Tax calculated at domestic tax rates applicable to profits in the respective countries | -11 343 | -22 077 |
| Income not subject to income tax | 4 249 | 8 891 |
| Utilization of previously unrecognized tax losses | 298 | 3 109 |
| Write off and tax losses not recognized as deferred taxes | -6 085 | -1 217 |
| Expenses not deductible for tax purposes | -404 | -395 |
| Prior year income taxes | 75 | -521 |
| Non-reimbursable withholding tax | -2 233 | -1 102 |
| Other | 505 | 1 546 |
| Tax expense | -14 938 | -11 766 |
Profit before tax includes the full profit before tax of a joint venture company whose taxes are paid by its shareholder since it is a tax transparent company. As a result 100% of the profit before taxes of this company is included although the Group only recognizes 50% of the taxes on this profit due to the special tax arrangements. The tax impact which is included in other amounts to kCHF 0 (2006: 1 138).
The weighted average applicable tax rate was 13.77% (2006: 14.69%). The decrease in tax rate is mainly attributable to change in the profitability mix of the subsidiaries (different countries, different tax regimes).