P7 Income tax

Recognized in profit and loss

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Income tax expense for the year
	2024	2025
Current tax	–371	–651
Adjustment of taxes attributable to prior years	577	–26
Total current tax expense	206	–677
Deferred taxes relating to temporary differences and tax losses carried forward	90	–97
Total tax expense	296	–774

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.

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Reconciliation of the Parent Company’s nominal tax rate and actual tax expense:
	2024		2025
	MSEK	%	MSEK	%
Profit after financial items	8,421		12,905
Weighted average tax based on each country’s tax rate	–1,735	–20.6	–2,658	–20.6
Tax effect of
Non-deductible expenses	–126	–1.5	–185	–1.4
Tax-exempt income	1,578	18.7	2,087	16.1
Adjustments relating to prior years	577	6.9	–26	–0.2
Other	2	0.0	8	0.1
Total recognized tax expense	296	3.5	–774	–6.0

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.

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**Parent Company notes – Deferred tax assets and liabilities recognized in the balance sheet**
	2024			2025
	Deferred tax assets	Deferred tax liabilities	Net	Deferred tax assets	Deferred tax liabilities	Net
Property, plant and equipment	–	–24	–24	–	–24	–24
Inventories	23	–	23	28	–	28
Provisions	–	–22	–22	–	–15	–15
Non-interest-bearing assets and liabilities	241	–11	230	121	0	121
Total	264	–57	207	149	–39	110
Offsetting	–264	264	–	–149	149	–
Total deferred tax assets and liabilities	–	207	207	–	110	110

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Change of deferred tax in temporary differences and unutilized tax losses carried forward
	2024	2025
Balance at the beginning of the year, net	117	207
Recognized in profit and loss	90	–97
Balance at end of year, net	207	110

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

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**Parent Company notes – Tax liabilities and receivables reported in addition to the deferred tax assets and liabilities**
	2024	2025
Income tax liabilities	–	–
Income tax receivables	1,955	1,867
Net tax liabilities/receivables	1,955	1,867

§ Accounting principles

Income tax

The Parent Company recognizes untaxed reserves including the deferred tax component.

In the consolidated financial statements, untaxed reserves are recognized in their equity and deferred tax components. Correspondingly, portions of appropriations are not allocated to deferred tax expenses in the Parent Company’s income statement.

Annual Report 2025