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, Jotun A/S uses currency options and forward contracts to ensure predictability
in cash flows up to 16 months ahead. As of 31 December 2021, Jotun A/S has hedged 50 per cent of its next
cash flow 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) 31.12.2021 31.12.2020
Local currency Currency amount NOK Currency amount NOK
USD 46 409 50 425
MYR 174 368 174 369
EUR 25 247 26 275
IDR 210 636 130 353 000 214
GBP 18 215 18 209
QAR 80 194 80 187
PHP 841 145 919 163
SGD 22 144 22 142
RUB 580 68 780 89
CNY - 65 85
Other 114 213
Total 2 035 2 370
5.1 TAXATION
Jotun A/S
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Income tax reported in the income statement
(NOK million) 2021 2020
Current income tax charge:
Tax payable 248 163
Deferred tax:
Relating to original and reversal of temporary differences -9 35
Income tax expense reported in the income statement 239 197
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) 2021 2020
Profit before tax as reported in the income statement 1 480 1 168
Income taxes at statutory tax rate 22 % 326 22 % 257
Exempted tax on dividends -18 % -260 -21 % -248
Tax on dividends and surplus in controlled foreign companies (CFC) 5 % 75 9 % 100
Non-deductible expenses and non-taxable income* 2 % 26 7 % 83
Correction previous year and change in temporary differences 0 % 2 -1 % -17
Taxation outside Norway less deductible in Norwegian Tax 5 % 70 2 % 23
Total income tax expense 239 197
Effective tax rate 16 % 17 %
* Non-deductible expenses are primarily related to write-down of shares. See Note 5.6 for further information.
Specification total tax payable
(NOK million) 31.12.2021 31.12.2020
Tax payable for the year 248 163
Net foreign tax paid -84 -31
Norwegian tax settlement for previous years -8 16
Withholding taxes receivable -66 -80
CFC tax receivable (NOKUS) -18 -39
SkatteFUNN (R&D tax incentive scheme) receivable -5 -5
Total tax payable in Norway and abroad 68 24
Tax payable in Norway 42 -7
Specification of deferred tax
(NOK million) 31.12.2021 31.12.2020
Non-current assets -106 -64
Current assets -50 -1
Liabilities -500 -537
Net temporary differences -656 -601
Tax rate 22 % 22 %
Deferred tax asset recognised in the statement of financial position 144 132
Information about estimate and judgment, see Note 5.1 to the consolidated financial statements.
Jotun Annual Report 2021 I 61