12. Income taxes
Income taxes include the taxes on income paid or owed in the individual countries as well as deferred taxes.
€ million |
2019/20 |
2020/21 |
|---|---|---|
Deferred tax expense/income (+/−) |
−25 |
−72 |
thereof from temporary differences |
(−22) |
(−67) |
thereof from loss and interest carry-forwards |
(−3) |
(−5) |
€ million |
2019/20 |
2020/21 |
|---|---|---|
Actual taxes |
133 |
157 |
thereof Germany |
(10) |
(12) |
thereof international |
(123) |
(145) |
thereof tax expenses/income of current period |
(143) |
(102) |
thereof tax expenses/income of previous periods |
(−10) |
(55) |
Deferred taxes |
−25 |
−72 |
thereof Germany |
(24) |
(3) |
thereof international |
(−49) |
(−76) |
|
108 |
85 |
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 previous year. 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 9.00% (2019/20: 0.00%) and 34.94% (2019/20: 34.94%).
The decrease of €23 million in the recognised income tax expenses is mainly attributable to opposing effects between effective and deferred taxes in Austria (country exit Japan) and Russia as well as to reversal effects of deferred tax liabilities in Germany.
Applying the German group tax rate to the reported pre-tax result would result in an income tax expense of €12 million (2019/20: €−10 million). The deviation of €73 million (2019/20: €118 million) from the reported tax expense of €85 million (2019/20: €108 million) can be reconciled as follows:
€ million |
2019/20 |
2020/21 |
|---|---|---|
EBT (earnings before taxes) |
−32 |
40 |
Expected income tax expenses (30.53%) |
−10 |
12 |
Effects of differing national tax rates |
−2 |
−17 |
Tax expenses and income relating to other periods |
−10 |
−11 |
Non-deductible business expenses for tax purposes |
52 |
20 |
Effects of not recognised or impaired deferred taxes |
69 |
92 |
Additions and reductions for local taxes |
15 |
12 |
Tax holidays |
−3 |
−24 |
Other deviations |
−2 |
0 |
Income tax expenses according to the income statement |
108 |
85 |
Group tax rate |
−338.3% |
212.6% |
The item ‘effects of differing national tax rates’ includes a deferred tax expense of €3 million (2019/20: €3 million) from tax rate changes.
The tax expenses and income relating to other periods include the offsetting effects between effective and deferred taxes (Japan country exit).
The reduction in non-deductible operating expenses is largely attributable to transfer pricing agreements entered into with foreign tax authorities in connection with the recognition of the group-wide transfer pricing system introduced in previous years.
The year-on-year increase in deferred taxes that are either not recognised or have been written down is primarily due to losses related to the Japan country exit.
Tax holidays for the current year include effects from various tax-free divestments.