Provisions for anticipated losses from pending transactions must
be recognized when applicable for financial reporting purposes.
For tax purposes, however, it has not been possible to recognize
such provisions since 1 January 1997.
Tax rules also stipulate stricter recognition
criteria for a number of provisions, including
provisions for infringement of patents, copyrights or similar
industrial rights, and provisions for long-term service awards.
Provisions (and liabilities) must be discounted for tax purposes
using an interest rate of 5.5% (except pension provisions, see
above). Only short-term provisions and liabilities (maturing
within 12 months of the balance sheet date) or interest-bearing
amounts are excepted from this requirement.