ALTANA

Income Taxes

Income tax expense is as follows:

As in 2014, the combined income tax rate is 29 %, consisting of the corporate tax rate of 15 %, the solidarity surcharge on corporate tax in Germany of 5.5 % and the trade tax of about 13 %. The trade tax rate is based on the weighted average of the collection rate of all German municipalities in which ALTANA operates business premises.

For the years reported, the differences between income tax expense calculated by applying the expected combined income tax rate of 29 % and the effective income tax are as follows:

Deferred tax assets and liabilities related to the following items in the statement of financial position:

The periods in which the tax loss carry-forwards may be used are as follows:

Deferred tax assets on tax loss carry-forwards of € 30.1 million and € 44.2 million were not recognized as of December 31, 2015 and 2014, respectively, due to the fact that the future utilization against taxable income is not probable. Tax loss carry-forwards for which no deferred tax assets were recognized amounting to € 10.5 million have unlimited carry-forward periods, € 11.4 million will expire through 2020, and € 8.2 million will expire after 2020.

As of December 31, 2015 and 2014, a deferred tax liability was not recorded for the amounts of € 48.3 million and € 52.5 million, respectively, which represent the temporary differences between the undistributed earnings of certain investments in subsidiaries and the tax bases of these investments in subsidiaries, as the timing of their reversal can be controlled and is not probable in the foreseeable future.