Income taxes include the taxes on income paid or owed in the individual countries as well as deferred taxes.
€ million |
2021/22 |
2022/23 |
|---|---|---|
Deferred tax expense/income (+/−) |
28 |
82 |
thereof from temporary differences |
(8) |
(75) |
thereof from loss and interest carry-forwards |
(20) |
(7) |
€ million |
2021/22 |
2022/23 |
|---|---|---|
Actual taxes |
168 |
88 |
thereof Germany |
(13) |
(17) |
thereof international |
(155) |
(71) |
thereof tax expenses/income of current period |
(171) |
(153) |
thereof tax expenses/income of previous periods |
(−3) |
(−66) |
Deferred taxes |
28 |
82 |
thereof Germany |
(2) |
(14) |
thereof international |
(26) |
(68) |
|
196 |
170 |
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 0.00% (2021/22: 9.00%) and 38.07% (2021/22: 38.07%).
In the previous year, the utilisation of loss carry-forwards and temporary differences, which were not valued with deferred taxes, led to a reduction of the actual income tax expense of €36 million and was related to property disposals in Japan.
The reversal of an earlier devaluation of deferred taxes had resulted in income of €4 million in the previous year.
The tax expense in the current year includes a deferred tax expense from the devaluation of a deferred tax asset in the amount of €37 million (2021/22: €0 million).
Applying the German group tax rate to the reported pre-tax result would result in an income tax expense of €186 million (2021/22: €−41 million). The deviation of €−16 million (2021/22: €237 million) from the reported tax expense of €170 million (2021/22: €196 million) can be reconciled as follows:
€ million |
2021/22 |
2022/23 |
|---|---|---|
Earnings before taxes (EBT) |
−134 |
609 |
Expected income tax expenses (30.53%) |
−41 |
186 |
Effects of differing national tax rates |
−3 |
−15 |
Tax expenses and income relating to other periods |
−3 |
−66 |
Non-deductible business expenses for tax purposes |
106 |
62 |
Effects of deferred taxes |
94 |
60 |
Additions and reductions for local taxes |
14 |
−13 |
Tax-free income |
−14 |
−7 |
Other deviations |
44 |
−36 |
Income tax expenses according to the income statement |
196 |
170 |
Group tax rate |
−146.3% |
27.9% |
The item effects of differing national tax rates includes a deferred tax expense of €7 million (2021/22: €6 million) from tax rate changes.
Of the current year’s tax income relating to other periods, €53 million is attributable to the exit from Japan. An opposite effect from deferred taxes is recognised in the item effects of deferred taxes amounting to €58 million.
The non-deductible business expenses of the current year mainly include non-profit-related withholding tax from intra-group dividends in the amount of €24 million (2021/22: €59 million) and additions under the External Tax Relations Act amounting to €10 million (2021/22: €21 million).
In the current year, additions and reductions for local taxes include an effect of €−30 million from the trade-tax-free sale of parts of the METRO Campus.
€−36 million (2021/22: €28 million) of the item other deviations relate to non-tax-deductible effects in conjunction with portfolio adjustments.
Council Directive (EU) 2022/2523 on ensuring a minimum global tax rate of 15% based on the OECD model entered into force in December 2022 as part of the agreement on reforming international corporate taxation. Implementation in German law should be concluded by the end of 2023 and applicable from 2024. This has no tax-related effect for the METRO group as of 30 September 2023. We also do not expect material effects from the minimum tax rate in future. Due to the differing financial year from the calendar year, the regulations will be applicable to the METRO group as of 1 October 2024 for the first time.