Deutsche Bank to recognise Corporate Tax Credits of approx. EUR 350 million in 4Q2006
As a result of the amendment to Section 37 of the German Corporate Income Tax Law, Deutsche Bank (XETRA: DBKGn.DE / NYSE: DB) will accelerate recognition of Corporate Tax Credits, or Koerperschaftsteuerguthaben, existing from prior years. This claim is in respect of tax credits receivable in ten equal instalments between 2008 and 2017. The present value of these credits, of approximately € 350 million, will be recognised as a one-time tax benefit in the fourth quarter 2006 results of Deutsche Bank Group. This booking will positively impact net income and lower the effective tax rate in the quarter.
The recognition of these tax credits in the fourth quarter 2006 does not represent any incremental tax benefit over and above tax benefits which already existed prior to the amendment of Section 37. In accordance with accounting rules applicable to Deutsche Bank, the amendment requires these benefits to be recognised currently.
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