Mizuho Bank Europe Annual Report 2018

59 2018 ANNUAL REPORT The specification of the staff costs is as follows: (in €’000) 2018 2017 Wages and salaries 9,767 9,139 Pension and early retirement costs 952 3,511 Social security charges 1,005 866 Other social costs 126 66 11,850 13,582 The specification of the pension and early retirement costs is as follows: (in €’000) 2018 2017 Contributions to the pension insurance fund 1,403 995 Addition to ASC 715 pension liabilities - 2,516 Release from ASC 715 pension liabilities (451) - 952 3,511 The average number of employees in full time equivalents (FTE) in 2018 for Amsterdam, Brussels, Vienna and Madrid was 90.8 (2017: 88.6): 2018 2017 Amsterdam 75.2 72.8 Brussel 5.1 5.2 Vienna 6.3 6.6 Madrid 4.2 4.0 90.8 88.6 32. Income tax The specification of the income tax is as follows: (in €’000) 2018 2017 Operation result before taxation 29,047 22,291 Tax calculated at nominal tax rate 7,313 5,573 Tax losses carried forward (169) 58 Rate changes 541 - Tax on non-deductible expenses 11 4 Rounding (10) (10) Tax adjustments previous years (19) - 7,667 5,625 This item concerns all tax charges attributable to the financial year in respect of the income stated in the profit and loss account. The nominal tax rate is deemed to be equal to the actual effect on the profit of the year. The total amount of tax paid in 2018 is € 8,336,000 (in 2017: € 8,755,000). The effective tax rate on a consolidated level is 26.4% (in 2017: 25.2%). The effective tax rate for MBE’s Amsterdam office is 27.4% (in 2017: 24.7%). The nominal tax rate in the Netherlands is 20% for the first € 200,000 and for the remainder 25% (in 2017: 20% for the first € 200,000 and for the remainder 25%). The difference in 2018 between the nominal and effective tax rate is mainly caused by tax losses carried forward from the branches and (future) changes in tax rates in the Netherlands and in Belgium caused a decrease of the deferred tax asset. The effective tax rate for MBE’s Brussels branch is 0% (in 2017: 0%). The nominal tax rate in Belgium is 29.58% (in 2017: 33.99%). The difference in 2018 between the nominal and effective tax rate is caused by the loss incurred in 2018. The effective tax rate for MBE’s Vienna branch is 25.1% (in 2017: 5%). The nominal tax rate in Austria is 25% (in 2017: 25%). The difference in 2018 between the nominal and effective tax rate is caused by the loss carried forward and non-deductible expenses. The effective tax rate for MBE’s Madrid branch is 30% (in 2017: 0%). The nominal tax rate in Spain is 30% (in 2017: 30%).