Deferred tax (note 25)
Total income tax expense for the financial year
The Company and its Irish tax resident subsidiaries have elected to be taxed under the Irish tonnage tax scheme. Under the tonnage tax scheme, taxable profit on eligible activities is calculated on a specified notional profit per day related to the tonnage of the vessels utilised. In accordance with the IFRIC clarification of tonnage taxes issued May 2009, the tonnage tax charge is not considered an income tax expense under IAS 12 Income Taxes, and has been included in other operating expenses in the Consolidated Income Statement.
Domestic income tax is calculated at 12.5% of the estimated assessable profit for the year for all activities which do not fall to be taxed under the tonnage tax scheme. Taxation for other jurisdictions is calculated at the rates prevailing in the relevant jurisdictions. The income tax expense for the year includes a current tax charge of €1.2 million and a deferred tax credit of €0.2 million.
The total tax expense for the financial year is reconciled to the accounting profit as follows:
(Loss) / profit before tax
Tax at the domestic income tax rate of 12.5% (2019: 12.5%)
Losses not eligible for surrender under loss provisions
Effect of tonnage relief
Difference in effective tax rates
Items for which no tax deduction is available
Income tax expense recognised in the Consolidated Income Statement