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Income tax

12 Months Ended

Dec. 31, 2019

18 Income tax


	Note		2019		2018			2017

Current tax
Current year				118		54			220

Adjustments to prior years				(14)		(36	)		47
				104		18			267
Deferred tax		40

Origination / (reversal) of temporary differences				69		23			397

Changes in tax rates / bases				33		(30	)		(550	)

Changes in deferred tax assets as a result of recognition / write off of previously not recognized / recognized tax losses, tax credits and deductible temporary differences				4		(35	)		(45	)

Non-recognition of deferred tax assets				17		17			41

Adjustments to prior years				(8)		48			(45	)
				114		22			(201	)
Income tax for the period (income) / charge				218		40			65

Adjustments to prior years include shifts between current and deferred tax.


Reconciliation between standard and effective income tax:	2019		2018			2017
Income before tax		1,457		751			2,534

Income tax calculated using weighted average applicable statutory tax rates		293		178			745

Difference due to the effects of:

Non-taxable income		(76)		(80	)		(157	)

Non-tax deductible expenses		22		28			28

Changes in tax rate/base		33		(30	)		(550	)

Different tax rates on overseas earnings		(1)		-			(1	)

Tax credits		(67)		(68	)		(67	)

Other taxes		57		29			67

Adjustments to prior years		(22)		11			2

Origination and change in contingencies		-		2			9

Changes in deferred tax assets as a result of recognition / write off of previously not recognized / recognized tax losses, tax credits and deductible temporary differences		4		(35	)		(45	)

Non-recognition of deferred tax assets		17		17			41

Tax effect of (profit) / losses from joint ventures and associates		(11)		(9	)		(7	)

Other		(31)		(3	)		(1	)
		(76)		(138	)		(680	)
Income tax for the period (income) / charge		218		40			65

The weighted average applicable statutory tax rate for 2019 is 20.1% (2018: 23.7%; 2017: 29.4%). The decrease in the weighted average applicable statutory tax rate compared to 2018 is mainly due to the relatively high contribution of income before tax in the United States versus the negative income before tax in the Netherlands and the United Kingdom.

Non-taxable income in 2019 comprises of the regular non-taxable items such as the Dividend Received Deduction in the US and the Participation Exemption in the Netherlands. Compared to 2017 the non-taxable income decreased because of the decrease of the US corporate income tax rate from 35% to 21% as from January 1, 2018. Non-taxable income in 2017 includes the tax exempt sale proceeds of the Dutch Unirobe Meeùs Group.

Changes in tax rate/base in 2017 highly benefited by the decrease of the US corporate income tax rate from 35% to 21% as from January 1, 2018.

In the Netherlands, the corporate income tax rate will decrease from 25% to 21.7% as from January 1, 2021. The beneficial impact of the previous enacted tax rate change in the Netherlands is included in the 2018 change in tax rate/base. In 2019 part of this beneficial impact is reversed due to the new enacted tax rate. In the UK, the corporate income tax rate will decrease from 19% to 17% with effect from April 1, 2020.

Tax credits include tax benefits from US investments that provide affordable housing to individuals and families that meet median household income requirements.

Adjustments to prior year consists of one time tax benefit in the Netherlands in respect of the 2017 and 2018 tax returns filed.

Other mainly relates to the one off tax benefit in the UK due to the release of the historic deferred tax balances held in respect of the pension scheme deficit when the Defined Benefit pension scheme moved to surplus.

The following tables present income tax related to components of other comprehensive income and retained earnings.


	2019		2018			2017
Items that will not be reclassified to profit and loss:
Changes in revaluation reserve real estate held for own use		1		7			9

Remeasurements of defined benefit plans		90		(15	)		(175	)
		92		(8	)		(166	)
Items that may be reclassified subsequently to profit and loss:

(Gains) / losses on revaluation of available-for-sale investments		(724)		531			(157	)

(Gains) / losses transferred to the income statement on disposal and impairment of available-for-sale investments		94		(17	)		441

Changes in cash flow hedging reserve		3		1			567

Movement in foreign currency translation and net foreign investment hedging reserve		(5)		(20	)		76
		(632)		494			927
Total income tax related to components of other comprehensive income		(541)		486			762

In 2017, the income tax related to components of OCI included a deferred tax benefit of EUR 479 million caused by the decrease of the US corporate income tax rate from 35% to 21% as from January 1, 2018.


		2019		2018			2017
Income tax related to equity instruments and other

Income tax related to equity instruments	31		51		38			44

Other			(1)		(12	)		14
Total income tax recognized directly in retained earnings			50		26			58

Aegon N.V [member]

Statement [LineItems]

Income tax

7 Income tax



	2019			2018
Current Tax
Current Tax		40			2
Income tax for the period (income) / charge		40			2

Reconciliation between standard and effective tax
Income before tax		(181	)		(124	)
Tax on income on Dutch corporate income tax rate		45			31

Differences due to the effect of:
Non deductible expenses		(6	)		(5	)
Adjustments prior year		-			(24	)
Total		40			2