25. Deferred tax assets/deferred tax liabilities

Deferred tax assets on tax loss carry-forwards and temporary differences amount to €1,257 million before offsetting (30/9/2020: €1,249 million), an increase of €8 million compared with 30 September 2020. The carrying amounts of deferred tax liabilities decreased by €62 million to €995 million compared with the previous year (30/9/2020: €1,057 million).

Deferred taxes relate to the following balance sheet items:

Of the reported balance of deferred tax assets and liabilities, €51 million (30/9/2020: €53 million) is attributable to the group of incorporated companies of METRO AG. The additional surplus of €211 million (30/9/2020: €139 million) is largely attributable to temporary differences at various foreign subsidiaries. Based on business planning, realisation of these tax assets is to be considered sufficiently likely.

In accordance with IAS 12 (Income Taxes), deferred tax liabilities relating to differences between the carrying amount of a subsidiary’s pro rata equity in the balance sheet and the carrying amount of the investment for this subsidiary in the parent company’s tax statement must be recognised (so-called outside basis differences) if the tax benefit is likely to be realised in the future. The differences can primarily be attributed to retained earnings of subsidiaries in Germany and abroad. No deferred taxes were recognised for these retained earnings as they will be reinvested over an indefinite period of time or are not subject to relevant taxation. Any dividends paid by subsidiaries would be subject to dividend tax. In addition, foreign dividends may trigger a withholding tax. As of 30 September 2021, no deferred tax liabilities were recognised for planned dividend payments (30/9/2020: €8 million). The sum of the amount of temporary differences in connection with investments in subsidiaries for which no deferred tax liabilities were recognised was not determined as this would have been disproportionately expensive due to the level of detail of the METRO group.

The outside basis difference recognised in the reporting period relates to the country exit from Japan.

No deferred tax assets were capitalised for the following tax loss carry-forwards and interest carry-forwards or temporary differences because realisation of the assets in the short to medium term is not expected:

The loss carry-forwards as of the closing date predominantly concern the German consolidation group. They can be carried forward without limitation.

Deferred taxes on components of other comprehensive income primarily apply to the remeasurement of defined benefit pension plans. The other components are not tax-effective.