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 (30/9/2020: €1,057 million).

Deferred taxes relate to the following balance sheet items:

 

30/9/20201

30/9/2021

Change through profit or loss

€ million

Assets

Liabilities

Assets

Liabilities

Assets

Liabilities

Goodwill

25

35

21

0

−4

−29

Other intangible assets

13

117

9

123

0

6

Property, plant and equipment and investment properties

80

699

87

703

8

5

Financial investments and investments accounted for using the equity method

2

4

4

4

0

−6

Inventories

24

1

28

0

3

−1

Other financial and non-financial assets

54

89

63

68

−10

−13

Assets held for sale

0

0

0

0

0

0

Provisions for post-employment benefits plans and similar obligations

127

33

112

54

−3

4

Other provisions

41

4

45

10

5

3

Financial liabilities

763

29

747

2

−15

−24

Other financial and non-financial liabilities

124

37

91

31

−28

1

Liabilities related to assets held for sale

0

0

0

0

0

0

Outside basis differences

0

8

66

0

66

−8

Write-downs of temporary differences

−76

0

−91

0

−16

0

Loss carry-forwards

70

0

75

0

5

0

Carrying amount of deferred taxes before offsetting

1,249

1,057

1,257

995

9

−63

Offsetting

−991

−991

−911

−911

−9

−9

Carrying amount of deferred taxes

258

66

345

83

0

−72

1

Previous year’s comparative values were adjusted due to a change in the accounting method (inventories); see the notes section ‘Change in accounting method (inventories)’.

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:

€ million

30/9/2020

30/9/2021

Corporate tax losses

4,686

4,802

Trade tax losses

3,752

3,742

Interest carry-forwards

90

114

Temporary differences

288

331

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

Tax effects on components of other comprehensive income

 

2019/20

2020/21

€ million

Before taxes

Taxes

After taxes

Before taxes

Taxes

After taxes

Currency translation differences from translating the financial statements of foreign operations

−468

0

−468

111

0

111

thereof currency translation differences from net investments in foreign operations

(−72)

(0)

(−72)

(12)

(0)

(12)

Effective portion of gains/losses from cash flow hedges

−2

0

−1

3

−1

3

Effects from the fair value measurements of equity instruments

0

0

0

0

0

0

Effects from the fair value measurements of debt instruments

0

0

0

0

0

0

Subsequent measurement of associates/joint ventures accounted for using the equity method

0

0

0

−9

0

−9

Remeasurement of defined benefit pension plans

7

−2

5

−2

4

2

Remaining income tax on other comprehensive income

0

0

0

0

0

0

 

−463

−2

−466

103

4

107

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.

Previous year
Period of 12 months that is usually cited as a reference for statements in the annual report and refers to the financial year preceding the reporting year.
Glossary