11. Income taxes
Income taxes include the expected taxes on income paid or owed in the individual countries as well as deferred taxes.
€ million |
|
2016/17 |
|
2017/18 |
Deferred taxes in the income statement |
|
73 |
|
4 |
thereof from temporary differences |
|
(82) |
|
(−14) |
thereof from loss and interest carry-forwards |
|
(−9) |
|
(18) |
€ million |
|
2016/17 |
|
2017/18 |
Actual taxes |
|
222 |
|
231 |
thereof Germany |
|
(27) |
|
(14) |
thereof international |
|
(195) |
|
(217) |
thereof tax expenses/income of current period |
|
(217) |
|
(252) |
thereof tax expenses/income of previous periods |
|
(5) |
|
(−21) |
Deferred taxes |
|
73 |
|
4 |
thereof Germany |
|
(−8) |
|
(39) |
thereof international |
|
(81) |
|
(−35) |
|
|
295 |
|
235 |
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% (2016/17: 0.00%) and 44.41% (2016/17: 34.43%).
The reported income tax expenses of €235 million (2016/17: €295 million) are €60 million lower than in the previous year. Besides changes in legislation abroad, the change is, among other reasons, due to lower expenses for write-downs of deferred taxes and risk reduction as well as one-time effects.
Actual taxes include paid taxes of €46 million resulting from group-internal pre-structuring for foreign real estate transactions. A deferred tax revenue of the same amount also results from this transaction.
The income tax expenses of €230 million (continuing and discontinued operations; 2016/17: €304 million) are €54 million (2016/17: €106 million) higher than the expected income tax expenses of €176 million (2016/17: €198 million) that would have resulted if the German total tax rate had been applied to the group’s annual results before income taxes.
Reconciliation of estimated to actual income tax expenses is as follows:
€ million |
|
2016/17 |
|
2017/18 |
EBT (earnings before taxes) |
|
649 |
|
578 |
from continuing operations |
|
674 |
|
693 |
from discontinued operations |
|
−25 |
|
−115 |
Expected income tax expenses (30.53%) |
|
198 |
|
176 |
Effects of differing national tax rates |
|
−35 |
|
−66 |
Tax expenses and income relating to other periods |
|
5 |
|
−21 |
Non-deductible business expenses for tax purposes |
|
49 |
|
43 |
Effects of not recognised or impaired deferred taxes |
|
137 |
|
93 |
Additions and reductions for local taxes |
|
16 |
|
16 |
Tax holidays |
|
−19 |
|
−15 |
Other deviations |
|
−48 |
|
3 |
Income tax expenses according to the income statement |
|
304 |
|
230 |
from continuing operations |
|
295 |
|
235 |
from discontinued operations |
|
9 |
|
−5 |
Group tax rate |
|
46.9% |
|
39.8% |
from continuing operations |
|
43.8% |
|
33.9% |
from discontinued operations |
|
−35.1% |
|
4.3% |
The item effects of differing national tax rates includes deferred tax revenue of €23 million (2016/17: €18 million expenses) from tax rate changes.
Tax expenses and income relating to other periods within the financial year include a repayment of approximately €20 million because of a retrospective change in foreign law in the year 2018.
The other deviations of the previous year mainly include deferred tax income from the reversal of a deferred tax liability in connection with the reallocation of goodwill.