12. Income taxes

Income taxes include the taxes on income paid or owed in the individual countries as well as deferred taxes.

€ million

2017/181

2018/19

1

Adjustment of previous year according to explanation in notes.

Deferred taxes in the income statement

43

83

thereof from temporary differences

(24)

(15)

thereof from loss and interest carry-forwards

(19)

(68)

€ million

2017/181

2018/19

1

Adjustment of previous year according to explanation in notes.

Actual taxes

173

215

thereof Germany

(14)

(9)

thereof international

(159)

(206)

thereof tax expenses/income of current period

(194)

(221)

thereof tax expenses/income of previous periods

(−21)

(−6)

Deferred taxes

43

83

thereof Germany

(39)

(104)

thereof international

(4)

(−21)

 

216

298

The income tax rate of the German companies of METRO consists of a corporate income tax of 15.00% plus a 5.50% solidarity surcharge on corporate income tax as well as the trade tax of 14.70% given an average assessment rate of 420.00%. All in all, this results in an aggregate tax rate of 30.53%. The tax rates are unchanged from the . The income tax rates applied to foreign companies are based on the respective laws and regulations of the individual countries and vary within a range of 0.00% (2017/18: 0.00%) and 34.94% (2017/18: 44.41%).

At €298 million (2017/18: €216 million), recognised income tax expenses are €81 million higher than in the previous year. In addition to an increase in pre-tax earnings, the change is due to higher expenses for impairments on deferred taxes, among other things.

Applying the German group tax rate to the reported pre-tax result would result in an income tax expense of €216 million (2017/18: €176 million). The deviation of €81 million (2017/18: €40 million) from the reported tax expense of €298 million (2017/18: €216 million) can be reconciled as follows:

€ million

2017/181

2018/19

1

Adjustment of previous year according to explanation in notes.

EBT (earnings before taxes)

576

709

Expected income tax expenses (30.53%)

176

216

Effects of differing national tax rates

−58

−62

Tax expenses and income relating to other periods

−21

−6

Non-deductible business expenses for tax purposes

41

51

Effects of not recognised or impaired deferred taxes

79

114

Additions and reductions for local taxes

11

13

Tax holidays

−14

−39

Other deviations

3

5

Income tax expenses according to the income statement

216

298

Group tax rate

37.6%

42.0%

The item ‘effects of differing national tax rates’ includes a deferred tax revenue of €6 million (2017/18: €23 million) from tax rate changes.

Tax expenses and income relating to other periods of the previous year include a repayment of approximately €20 million because of a retrospective change in foreign law in 2018.

Tax holidays for the current year include effects from real estate transactions in the amount of €30 million (2017/18: €2 million).

Previous year
Period of 12 months, usually cited as reference for statements in an annual report.
Glossary