25. Income tax expenses
|
|
2024 |
|
2023 |
|---|---|---|---|---|
|
|
MCHF |
|
MCHF |
Current taxes |
|
128.8 |
|
87.1 |
Deferred taxes |
|
11.5 |
|
37.7 |
Total income tax expenses |
|
140.3 |
|
124.8 |
The differences between income tax expenses computed at the weighted-average applicable tax rate of the Group of 16.8% (PY: 15.8%) and the effective income tax expenses were as follows:
|
|
2024 |
|
2023 |
|---|---|---|---|---|
|
|
MCHF |
|
MCHF |
Income tax expenses, at applicable rate |
|
123.8 |
|
117.1 |
Tax losses with no current tax benefit |
|
0.0 |
|
0.0 |
Offsetting of current profits against loss carryforwards without tax assets |
|
-0.3 |
|
0.0 |
Changes in future tax rates |
|
1.1 |
|
1.2 |
Non-deductible expenses and non-taxable income, net |
|
6.0 |
|
1.7 |
Other |
|
9.7 |
|
4.8 |
Total income tax expenses |
|
140.3 |
|
124.8 |
In 2021, the OECD published a regulatory framework for a global minimum top-up income tax (the OECD Pillar Two model rules). The rules are designed to ensure that multinational companies within the scope of the rules pay a minimum tax rate of 15% in each jurisdiction where they operate. The Group is within the scope of the OECD Pillar Two model rules.
Both Switzerland and other jurisdictions in which the Group operates have (substantively) enacted the Pillar Two legislation. The legislation became effective as of 1 January 2024. In Switzerland, a Qualified Domestic Minimum Tax (“QDMTT”) is levied from 1 January 2024 and the Income Inclusion Rule (“IIR”) from 1 January 2025. The Undertaxed Profits Rule (“UTPR”) is currently postponed to a later date.
Since the jurisdictional effective tax rate 2024 of Switzerland is 15.2% no Swiss top-up tax was incurred.
In 2024, the position “Other” mainly included the increase of provisions for specific tax risks and effects from withholding taxes from dividend payments within the Group.