Note 10. Income tax

Recognized in profit and loss

The Group’s recognized tax expense for the continuing operations for the year amounted to 3,421 million SEK (4,645) or 28.2 percent (26) of profit after financial items. The major part of the deferred tax is related to the reversal of the deferred tax liabilities due to the ongoing divestment of Varel.

Reconciliation of the Group’s tax expense

The Group’s weighted average tax rate for the continuing operations, calculated in accordance with the statutory tax rates in each country, is 22.6 percent (22.3). The tax rate in Sweden is 21.4 percent (22). Reconciliation of the Group’s weighted average tax rate, based on the tax rates in each country, and the Group’s actual tax expense:

The weighted average tax rate for Group total, based on the statutory tax rates in each country, is 23 percent (23).

Reconciliation of the Parent Company’s tax expense

The Parent Company’s effective tax rate is lower than the nominal tax rate in Sweden, mainly due to received dividends from shares in Group companies which are non-taxable incomes.

Reconciliation of the Parent Company’s nominal tax rate and actual tax expense:

Tax Items attributable to other comprehensive income

Recognized in the balance sheet

Deferred tax assets and liabilities

The deferred tax assets and liabilities recognized in the balance sheet are attributable to the following assets and liabilities.

Unrecognized deferred tax assets

The Group has additional tax loss carry-forward of 2,595 million SEK (3,038). The main part of the change for 2019 relates to revaluation and expiry of tax losses in prior years in Brazil and Chile. No deferred tax asset was recognized for these losses.

The expiry dates of these tax loss carry-forwards are distributed as follows:

Related deferred tax assets were not recognized since utilization of the tax losses against future taxable profits is not deemed probable in the foreseeable future. The tax value of the unrecognized tax loss carry-forwards amounted to 750 million SEK (826).

Change of deferred tax in temporary differences and unused tax losses

In addition to the deferred tax assets and liabilities. Sandvik reports the following tax liabilities and receivables:

Provisions for taxes reported last year is reclassified to income tax liabilities due to the new standard, IFRIC 23.