|TRIVAGO N.V. filed this Form 20-F on 03/06/2018|
Reconciliation of German statutory income tax rate to effective income tax rate
The following table summarizes our income (loss) before income taxes allocated to Germany and to other countries:
A reconciliation of amounts computed by applying the German statutory income tax rate to income (loss) before income taxes to total income tax expense (benefit) is as follows:
Our effective tax rate was 22.3% in 2015, (14.9)% in 2016 and 26.7% in 2017. This is primarily due to non-deductible share-based compensation of (pre-tax) €14.1 million in 2015, €53.7 million in 2016 and €16.0 million in 2017. Furthermore, (pre-tax) corporate costs amounting to €2.8 million for 2015, €4.2 million for 2016 and €0.1 million in 2017 were pushed down from Expedia. These corporate costs are non-deductible for tax purposes. Additional details on the movement in valuation allowance and changes in uncertain tax positions are included below.
Other differences relate to one-off items during the year. In 2015, €0.5 million of the total €0.8 million was related to the non-tax deductible expense for the release of a contingent asset at the level of trivago GmbH. The remainder of the other permanent differences amounts in 2015, 2016 and 2017 relate to individually insignificant non-deductible expenses at the level of trivago GmbH.
Uncertain tax positions
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows: