BASF Report 2021 Consoli dated Financial Statements – Notes 232 tax rates. Particularly higher tax-exempt income, mainly in Tax expense connection with the divestiture of the share in Solenis, had an Million € offsetting impact. 2021 2020 Current tax expense 1,436 398 Corporate income tax, solidarity surcharge and trade taxes (Germany) 38 73 Foreign income tax 1,575 739 Taxes for prior years –176 –414 Deferred tax expense (+) / income (–) –6 –489 From changes in temporary differences 49 –129 From changes in tax loss carryforwards/unused tax credits –67 –372 From changes in the tax rate –2 32 From valuation allowances on deferred tax assets 14 –20 Income taxes 1,430 –91 Reconciliation of income taxes and the effective tax rate 2021 2020 Million € % Million € % Income before income taxes 7,448 –1,562 Expected tax based on German corporate income tax rate (15%) 1,117 15.0 –234 15.0 Solidarity surcharge 0 0.0 2 –0.1 Trade taxes 78 1.1 –255 16.3 Foreign tax rate differential 548 7.4 55 –3.5 Tax-exempt income –211 –2.8 –64 4.1 Nondeductible expenses 140 1.9 339 –21.7 Income of companies accounted for using the equity method (income after taxes) –56 –0.7 106 –6.8 Taxes for prior years (current and deferred taxes) –176 –2.4 –103 6.6 Deferred tax liabilities for the future reversal of temporary differences associated with shares in –6 –0.1 –66 4.2 participating interests Changes in the tax rate –2 0.0 32 –2.1 Other –3 0.0 97 –6.2 Income taxes / effective tax rate 1,430 19.2 –91 5.8