4.4 FINANCIAL RISK MANAGEMENT
The company’s financial risks and the management of these are in all material aspects identical to the disclosures
made in Note 4.4 to the consolidated financial statements, unless otherwise stated below.
To reduce currency risk in cash flows up to 16 months ahead, Jotun A/S uses foreign currency options and forward
currency contracts to ensure predictability in the short to medium term cash flows. As of 31 December 2020, Jotun
A/S has hedged 17 per cent of its expected net cash flows over the next 12 months.
The currency exposures related to external loans in foreign currency given to Jotun entities are disclosed
in the table below.
(NOK million) 31.12.2020 31.12.2019
Local currency Currency amount NOK Currency amount NOK
USD 50 425 40 348
MYR 174 369 174 374
EUR 26 275 30 294
IDR 353 000 214 422 000 267
GBP 18 209 18 208
QAR 80 187 - -
PHP 919 163 919 159
SGD 22 142 22 144
RUB 780 89 1 150 163
CNY 65 85 192 242
Other 213 160
Total 2 370 2 358
5.1 TAXATION
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Jotun A/S
Income tax reported in the income statement
(NOK million) 2020 2019
Current income tax charge:
Tax payable 162 206
Deferred tax:
Relating to original and reversal of temporary differences 35 -33
Income tax expense reported in the income statement 197 174
Reconciliation of Norwegian nominal statutory tax rate to effective tax rate
In the following table reported income tax is reconciled with the calculated tax expense based on the Norwegian
tax rate of 22 per cent. The main components are specified below.
(NOK million) 2020 2019
Profit before tax as reported in the income statement 1 168 813
Income taxes at statutory tax rate 22 % 257 22 % 179
Exempted tax on dividends -21 % -248 -23 % -188
Tax on dividends and surplus in controlled foreign companies (CFC) 9 % 100 7 % 61
Non-deductible expenses and non-taxable income* 7 % 83 10 % 84
Correction previous year and change in temporary differences -1 % -17 0 % -2
Taxation outside Norway less deductible in Norwegian Tax 2 % 23 5 % 40
Total income tax expense 197 174
Effective tax rate 17 % 21 %
* Non-deductible expenses are primarily related to write-down of shares. See Note 5.6 for further information.
Specification total tax payable
(NOK million) 2020 2019
Tax payable for the year 162 206
Net foreign tax paid -31 -49
Norwegian tax settlement for previous years 16 13
Withholding taxes receivable -80 -69
CFC tax receivable (NOKUS) -39 -22
SkatteFUNN (R&D tax incentive scheme) receivable -5 -3
Total tax payable in Norway and abroad 23 75
Tax payable in Norway -7 65
Specification of deferred tax
(NOK million) 2020 2019
Non-current assets -64 -30
Current assets -1 -74
Liabilities -537 -655
Net temporary differences -601 -758
Tax rate 22 % 22 %
Deferred tax asset recognised in the statement of financial position 132 167
Jotun Annual Report 2020 I 61