A reconciliation of the calculation of income tax on profit before tax at the statutory tax rate and income tax calculated according to the effective tax rate of the Group is as follows:
| Year ended December 31, 2021 |
Year ended December 31, 2020 |
|
|---|---|---|
| PROFIT/(LOSS) BEFORE TAX | 4,871 | 314 |
| Income tax according to Polish statutory tax rate of 19% | 926 | 60 |
| ITEMS ADJUSTING INCOME TAX | ||
| Adjustments concerning current income tax from prior years | 27 | – |
| Adjustments of deferred income tax | (1) | 5 |
| Result on settlement of loss of control | (62) | – |
| Costs not recognised as tax-deductible costs | 50 | 139 |
| Tax loss | 9 | – |
| Recognition of non-tax provisions and impairment losses | 51 | 15 |
| Reversal of non-tax provisions and impairment losses | (53) | – |
| Non-taxable income | 5 | (27) |
| Other adjustments | (26) | (26) |
| TAX AT EFFECTIVE TAX RATE | ||
| Income tax (expense) as presented in the consolidated financial statements | 926 | 166 |
| EFFECTIVE TAX RATE | 19% | 53% |
Adjustments related to settlement of current income tax of previous years concern mainly final settlement of the tax group for the previous year. The differences arise from sales of electricity for the previous year invoiced in the current year, previously recognised based on estimates.