Notes to the company profit and loss account

13. Staff costs

In millions of euros 2018 2017
     
Salaries 216.5 138.6
Social security expenses 14.7 14.1
Pension costs 27.4 24.8
     
Total staff costs 258.6 177.5

The salary costs include the costs for the restructuring provision of € 43.3 million and the costs of buying out the employee benefit schemes of € 39.3 million. 

The specification of the remuneration for members of the Executive Board and Supervisory Board has been included in the notes to the consolidated financial statements.

14. Other operating expenses

In millions of euros 2018 2017
     
Costs of subcontracted work and other external costs 159.3 188.9
Cost of network management 124.9 105.4
Other operating expenses 37.6 34.4
     
Total other operating expenses 321.8 328.7

15. External auditor’s fees

For more information on the external auditor’s fees, refer to note 34 to the consolidated financial statements.

16. Finance income and expenses

In millions of euros   2018     2017
           
Interest income 112.3     116.0  
           
Total finance income   112.3     116.0
           
Interest expenses ‑74.1      ‑82.8  
Other finance expenses ‑1.4     ‑2.3  
           
Total finance expenses   ‑75.5     ‑85.1 
           
Net amount   36.8     30.9

17. Taxes

The taxes on the result in the profit and loss account comprise the following components:

In millions of euros 2018 2017
     
Corporate income tax payable for the financial year 28.7 43.0
Corporate income tax payable for the previous financial years 0.3 ‑8.3
     
Corporate income tax payable for the fiscal unity 29.0 34.7
Movement in deferred taxation ‑66.2 28.5
     
Tax charge on fiscal unity ‑37.2 63.2
Allocated to Gasunie Transport Services B.V. 31.8 ‑52.9
     
Total tax charge ‑5.4 10.3

N.V. Nederlandse Gasunie and its wholly-owned Dutch subsidiaries form a fiscal unity. No corporate income tax is allocated to these group companies, with the exception of Gasunie Transport Services B.V. N.V. Nederlandse Gasunie’s tax expense included in the company profit and loss account relates to all the companies in the fiscal unity, with the exception of Gasunie Transport Services B.V.

The movements in deferred taxation are specifically related to the change in the Dutch corporate income tax rate, effective from 2020.

Of the total tax profit of € 5.4 million (2017: € 10.3 million tax expense), a tax expense of € 8.8 million (2017: € 10.4 million tax expense) relates to results from participations within N.V. Nederlandse Gasunie’s fiscal unity, and a tax profit of € 14.2 million (2017: tax profit of € 0.1 million) relates to the company’s own results.

The tax profit of € 5.4 million is excluding the tax profit of € 31.8 million recognised by Gasunie Transport Services B.V. N.V. Nederlandse Gasunie is part of a fiscal unity in the Netherlands for the purposes of corporate income tax and VAT. Consequently, the company is jointly and severally liable for the corporate income and VAT liabilities of the fiscal unit as a whole.

18. Other items in the company profit and loss account

For information on other items in the company statement of profit and loss, refer to the notes to the relevant consolidated items in the consolidated financial statements.

The average number of employees in full-time equivalents in 2018 totalled 1,510 (2017: 1,532.8), 3.1 of whom were working abroad (2017: 3.1).

19. Subsequent events

On 24 July 2018, the Dutch Trade and Industry Appeals Tribunal (CBb) rescinded the method decision regarding GTS. On 24 January 2019, the ACM published an amended method decision regarding GTS for the period of 2017-2021. The main amendment is the lowering of the target for the general productivity improvement. The management expects the impact of the adjusted permitted return (WACC) to be limited. Stakeholders such as network operators and GTS customers can appeal the decision.