20. Income taxes
The tax ratio (= taxes in per cent of earnings before taxes) was 16% (2019: 22%).
|
EUR million |
2020 |
2019 |
|
Current taxes |
– 9.1 |
– 9.9 |
|
Deferred taxes |
1.8 |
0.9 |
|
Total taxes |
– 7.3 |
– 9.0 |
The Zehnder Group anticipates that tax loss carry-forwards amounting to EUR 34.8 million (2019: EUR 56.9 million) may be applied in the future. The deferred tax assets on this carried forward items would amount to EUR 5.7 million (2019: EUR 8.6 million).
The differences between the expected income tax expense, based on the expected income tax rate and the effective income tax expense shown in the income statement, has been influenced by the following factors. The expected income tax rate of the Group is based on the profit/loss before taxes and the applicable tax rate in the tax year for the Group companies.
|
EUR million |
2020 |
2019 |
|
Earnings before taxes |
47.2 |
40.9 |
|
Expected tax rate in % |
22.5 |
24.6 |
|
Expected tax expense |
– 10.6 |
– 10.0 |
|
Effect of tax incentives |
2.1 |
0.8 |
|
Effect of non-deductible expenses |
– 0.1 |
– 0.3 |
|
Effect of non-recognition of tax loss carry forwards |
– 0.2 |
– 0.7 |
|
Effect of use of unrecognised tax loss carry forwards |
4.3 |
1.8 |
|
Other effects |
– 2.7 |
– 0.4 |
|
Effective tax expense |
– 7.3 |
– 9.0 |
|
Effective tax rate in % |
15.5 |
21.9 |
The effect of tax incentives includes a deferred tax asset that was recorded in the tax balance sheet as a result of the tax reform measures introduced in Switzerland and the resulting step-up.
The other effects can be largely attributed to changes resulting from tax provisions.