12. Income taxes

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

€ million

2018/191

2019/20

Deferred tax expense/income (+/−)

86

−25

thereof from temporary differences

(18)

(−22)

thereof from loss and interest carry-forwards

(68)

(−3)

1

Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).

€ million

2018/191

2019/20

Actual taxes

215

133

thereof Germany

(9)

(10)

thereof international

(206)

(123)

thereof tax expenses/income of current period

(221)

(143)

thereof tax expenses/income of previous periods

(−6)

(−10)

Deferred taxes

86

−25

thereof Germany

(105)

(24)

thereof international

(−19)

(−49)

 

301

108

1

Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).

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% (2018/19: 0.00%) and 34.94% (2018/19: 34.94%).

At €108 million (2018/19: €301 million), recognised income tax expenses are €−193 million below previous year’s level. The decline in current income taxes amounting to €82 million (2018/19: increase by €42 million) is mainly due to the lower consolidated input tax earnings compared to the previous year. The decrease in deferred tax expenses of €111 million (2018/19: increase by €40 million) is due to the write-downs of deferred taxes on domestic loss carry-forwards recognised in the previous year.

Applying the German group tax rate to the reported pre-tax result would result in an income tax expense of €−10 million (2018/19: €222 million). The deviation of €118 million (2018/19: €79 million) from the reported tax expense of €108 million (2018/19: €301 million) can be reconciled as follows:

€ million

2018/191

2019/20

EBT (earnings before taxes)

728

−32

Expected income tax expenses (30.53%)

222

−10

Effects of differing national tax rates

−65

−2

Tax expenses and income relating to other periods

−6

−10

Non-deductible business expenses for tax purposes

51

52

Effects of not recognised or impaired deferred taxes

119

69

Additions and reductions for local taxes

13

15

Tax holidays

−39

−3

Other deviations

5

−2

Income tax expenses according to the income statement

301

108

Group tax rate

41.4%

−338.3%

1

Adjustment of previous year due to full retrospective application of IFRS 16 (Leases).

The item ‘effects of differing national tax rates’ includes a deferred tax expense of €3 million (2018/19: deferred tax income of €7 million) from tax rate changes.

Tax holidays for the include effects from real estate transactions in the amount of €30 million.

Previous year
Period of 12 months relating to the financial year preceding the reporting year, usually cited as reference for statements in an annual report.
Glossary
Previous year
Period of 12 months relating to the financial year preceding the reporting year, usually cited as reference for statements in an annual report.
Glossary