11. Income taxes

Income taxes include the expected taxes on income paid or owed in the individual countries as well as deferred taxes.

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€ million

2014/15

2015/16

Actual taxes

444

449

thereof Germany

(118)

(151)

thereof international

(326)

(298)

thereof tax expenses/income of current period

(454)

(488)

thereof tax expenses/income of previous periods

(−10)

(−39)

Deferred taxes

36

110

thereof Germany

(34)

(55)

thereof international

(2)

(55)

 

480

559

The income tax rate of the German companies of METRO GROUP consists of a corporate income tax of 15.00 per cent plus a 5.50 per cent solidarity surcharge on corporate income tax as well as the trade tax of 14.70 per cent given an average assessment rate of 420.00 per cent. All in all, this results in an aggregate tax rate of 30.53 per cent. 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 per cent (tax holidays) to 38.00 per cent. These tax rates are also unchanged from the previous year.

At €5 million, actual income tax expenses in financial year 2015/16 were reduced by the utilisation of previously unutilised tax losses (2014/15: €0 million).

Deferred tax liabilities for financial year 2015/16 comprise expenses of €2 million from changes in tax rates (2014/15: €4 million).

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€ million

2014/15

2015/16

Deferred taxes in the income statement

36

110

thereof from temporary differences

(−9)

(68)

thereof from loss and interest carry-forwards

(45)

(42)

At €559 million (2014/15: €518 million), income tax expenses, which are shown fully in earnings from ordinary activities, are €188 million (2014/15: €142 million) higher than expected income tax expenses of €371 million (2014/15: €376 million) that would have resulted if the German corporate income tax rate had been applied to the group’s taxable income for the year.

Reconciliation of estimated to actual income tax expenses is as follows:

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€ million

2014/15

2015/16

EBT (earnings before taxes)

1,232

1,216

from continuing operations

259

1,167

from discontinued operations

973

49

Expected income tax expenses (30.53%)

376

371

Effects of differing national tax rates

−46

−59

Tax expenses and income relating to other periods

−10

−39

Non-deductible business expenses for tax purposes

99

91

Effects of not recognised or impaired deferred taxes

200

238

Additions and reductions for local taxes

27

8

Tax holidays

−22

−55

Other deviations

−106

4

Income tax expenses according to the income statement

518

559

from continuing operations

480

559

from discontinued operations

38

0

Group tax rate

42.0%

46.0%

from continuing operations

185.5%

47.9%

from discontinued operations

3.8%

0.0%

Tax expenses and income relating to other periods primarily include refunds from a legal dispute that was settled during the financial year.

The other deviations in the previous year essentially include gains from the sale of the Galeria Kaufhof group (€−243 million) and expenses from impairment losses on goodwill at Real Germany (€136 million).