Tax

12 Months Ended

Dec. 31, 2021

Note 15 - Tax

The Company is a foreign corporation that is not subject to United States federal income taxes. Further, the Company is not subject to income taxes imposed by the Marshall Islands, the country in which it is incorporated, and there are no U.S. legal entities. The Monegasque company, DHT Management S.A.M., is subject to income taxation in Monaco, the Norwegian management company, DHT Management AS, is subject to income taxation in Norway and the subsidiaries in Singapore, DHT Ship Management (Singapore) Pte. Ltd, and DHT Chartering (Singapore) Pte. Ltd, are subject to income taxation in Singapore. The tax effects for the companies are disclosed below.

Specification of income tax:

(Dollars in thousands)	2021			2020		2019
Income tax payable	$	378		$	587	$	111
Tax expenses related to previous year		(27	)		309		32
Change in deferred tax		9			5		(12	)
Total income tax expense	$	360		$	900	$	131

Specification of temporary differences and deferred tax:

(Dollars in thousands)	December 31, 2021			December 31, 2020			December 31, 2019
Property, plant and equipment	$	(11	)	$	2		$	(13	)
Pensions		(662	)		(612	)		(420	)
Total basis for deferred tax		(674	)		(610	)		(432	)
Deferred tax liability(asset), net ⁽¹⁾⁽²⁾	$	(152	)	$	(140	)	$	(102	)
Deferred tax (asset), gross⁽³⁾		(166	)		(161	)		(126	)
Deferred tax liability, gross⁽³⁾		14			21			24

⁽¹⁾	Due to materiality, recognized in prepaid expenses and not on a separate line in the statements of financial position.

⁽²⁾	The general income tax rate was reduced from 23% to 22%, effective from fiscal year 2019.

⁽³⁾	Deferred tax liability is related to the subsidiary in Singapore and cannot be offset with the deferred tax asset related to the subsidiary in Norway.

Reconciliation of income tax expense:

(Dollars in thousands)	2021			2020		2019
Profit/(loss) before income tax	$	(11,147	)	$	267,181	$	73,812
Expected income tax assessed at the tax rate for the Parent company (0%)		-			-		-
Adjusted for tax effect of the following items:
Income in subsidiary, subject to income tax		360			900		131
Total income tax expense	$	360		$	900	$	131