17. Deferred income tax
Deferred income tax assets and liabilities developed as follows in the fiscal year:
Movement in deferred tax assets and liabilities | T103 | |
---|---|---|
in EUR thousands | 2024 | 2023 |
Deferred tax liabilities (net) - as of Jan 1 | 28,664 | 33,033 |
Deferred tax income | -8,292 | -2,388 |
Tax charged to other comprehensive income | -409 | -689 |
Foreign exchange rate differences | 1,883 | -1,292 |
Acquisition of subsidiaries | 1,323 | |
Deferred tax liabilities (net) - as of Dec 31 | 23,169 | 28,664 |
The cumulative impact from the recognition of deferred tax liabilities from cash flow hedges recognized in other reserves amounted to EUR 880 thousand at December 31, 2024 (December 31, 2023: EUR 1,300 thousand). The cumulative effects recognized in retained earnings from the recognition of deferred tax liabilities from pension remeasurements amounted to EUR 508 thousand (Dec. 31, 2023: EUR 498 thousand):
Deferred income tax assets and liabilities (excluding offsetting within individual tax jurisdictions) are as follows:
Deferred income tax assets | T104 | |
---|---|---|
in EUR thousands | Dec 31, 2024 | Dec 31, 2023 |
Intangible assets | 4,437 | 3,235 |
Property, plant and equipment | 1,395 | 1,135 |
Other assets | 2,231 | 2,177 |
Inventories | 5,735 | 4,581 |
Trade receivables | 3,955 | 3,595 |
Retirement benefit obligations/pension liabilities | 1,289 | 1,309 |
Provisions | 609 | 574 |
Borrowings | 2,896 | 557 |
Other liabilities, incl. derivatives | 13,043 | 13,321 |
Trade and other payables | 1,162 | 898 |
Tax loss carry forward and tax credits | 8,238 | 9,892 |
Deferred tax assets (before offsetting) | 44,990 | 41,274 |
Offsetting effects | -31,160 | -29,806 |
Deferred tax assets | 13,830 | 11,468 |
Deferred income tax liabilities | T105 | |
---|---|---|
in EUR thousands | Dec 31, 2024 | Dec 31, 2023 |
Intangible assets | 33,203 | 36,229 |
Property, plant and equipment | 22,262 | 21,761 |
Other assets | 5,630 | 4,395 |
Inventories | 79 | 80 |
Trade receivables | 724 | 635 |
Retirement benefit obligations/pension liabilities | 610 | 591 |
Borrowings | 181 | 181 |
Provisions | 427 | 366 |
Other liabilities, incl. derivatives | 2,514 | 3,057 |
Trade and other payables | 67 | |
Untaxed reserves | 2,529 | 2,576 |
Deferred tax liabilities (before offsetting) | 68,159 | 69,938 |
Offsetting effects | -31,160 | -29,806 |
Deferred tax liabilities | 36,999 | 40,132 |
Deferred tax liabilities (net) | 23,169 | 28,664 |
Deferred income tax assets are recognized for all deductible temporary differences between the carrying amounts of assets and liabilities in the Consolidated Statement of Financial Position and their tax bases to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences can be utilized. In the current fiscal year, deductible temporary differences for which a deferred income tax asset was recognized in previous years had to be partially written down due to insufficient taxable future earnings.
The Group recorded tax losses in some subsidiaries in 2024 and in previous years. In total, the recognized deferred income tax assets on temporary differences and tax loss carryforwards for subsidiaries that have incurred tax losses in the current or previous fiscal year amount to EUR 3,398 thousand (2023: EUR 10,238 thousand). Essentially, the deferred tax assets relate to loss carryforwards which can be carried forward indefinitely and have not expired.
The increase in deferred income tax liabilities in the item “Borrowings” compared to the previous year is primarily due to the exchange rate development of foreign currency liabilities.
The increase in deferred income tax liabilities in the item “Other assets” compared to the previous year mainly resulted from the exchange rate development of foreign currency receivables.
Deferred tax assets are recognized for tax loss carry forwards to the extent that it is probable that the tax assets will be realized in the foreseeable future. The usability of tax loss carry forwards over time is as follows:
Temporary usability of tax loss carry forwards | T106 | |
---|---|---|
in EUR thousands | Dec 31, 2024 | Dec 31, 2023 |
up to 1 year | 1,271 | 1,396 |
> 1 year up to 5 years | 1,271 | 13,868 |
> 5 years | 5,529 | 3,951 |
Unlimited carry forward | 168,129 | 144,879 |
Total | 176,200 | 164,094 |
The tax loss carry forwards amounted to EUR 176,200 thousand as at December 31, 2024 (Dec 31, 2023: EUR 164,094 thousand). Of this amount, EUR 74,699 thousand is attributable to German corporate income tax loss carryforwards (Dec. 31, 2023: EUR 64,072 thousand) and EUR 67,473 thousand to German trade tax loss carryforwards (Dec. 31, 2023: 59,027).
The usability of unrecognized tax loss carry forwards over time is as follows:
Temporary usability of unrecognized tax loss carry forwards | T107 | |
---|---|---|
in EUR thousands | Dec 31, 2024 | Dec 31, 2023 |
> 1 year up to 5 years | 4,198 | |
> 5 years | 3,840 | |
Unlimited carry forward | 132,281 | 97,554 |
Total | 136,121 | 101,752 |
The tax loss carry forwards for which no deferred tax assets were recognized amounted to EUR 136,121 thousand as of December 31, 2024 (Dec 31, 2023: EUR 101,752 thousand). Of this amount, EUR 63,923 thousand is attributable to German corporation tax loss carry forwards (Dec. 31, 2023: EUR 49,968 thousand) and EUR 56,696 thousand on German trade tax loss carryforwards (Dec 31, 2023: EUR 29,398 thousand).
The interest carried forward for tax purposes amounted to EUR 25,546 thousand as at December 31, 2024 (Dec 31, 2023: EUR 10,619 thousand). These are attributable to the intragroup refinancing of the previous year. No deferred income tax assets were recognized on the tax interest carry forwards, as they are not expected to be realized in the foreseeable future.
Tax liabilities may arise in connection with shares in subsidiaries. However, these tax liabilities were not recognized in the 2024 fiscal year, as the Group can determine the dividend policy of the subsidiaries. The Group can therefore control the reversal of temporary differences in connection with investments in subsidiaries. The Management Board assumes that there will be no reversals in the foreseeable future.
Legend
These contents are part of the Non-financial Group Report and were subject to a separate limited assurance examination.