25. Income tax expenses
|
|
2025 |
|
2024 |
|---|---|---|---|---|
|
|
MCHF |
|
MCHF |
Current taxes |
|
115.6 |
|
128.8 |
Deferred taxes |
|
21.2 |
|
11.5 |
Total income tax expenses |
|
136.8 |
|
140.3 |
The differences between income tax expenses computed at the weighted-average applicable tax rate of the Group of 17.4% (PY: 16.8%) and the effective income tax expenses were as follows:
|
|
2025 |
|
2024 |
|---|---|---|---|---|
|
|
MCHF |
|
MCHF |
Income tax expenses, at applicable rate |
|
128.0 |
|
123.8 |
Unrecognised tax losses |
|
0.8 |
|
0.0 |
Offsetting of current profits against unrecognised loss carryforwards |
|
0.0 |
|
-0.3 |
Changes in tax rates |
|
0.8 |
|
1.1 |
Non-deductible expenses and non-taxable income, net |
|
6.4 |
|
6.0 |
Other |
|
0.8 |
|
9.7 |
Total income tax expenses |
|
136.8 |
|
140.3 |
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 postponed to a later date.
The Group is affected by top-up tax for its operations in Switzerland. However, since the jurisdictional GloBE ETR 2025 of Switzerland was 15.2% no Swiss top-up tax had been incurred. Furthermore, the Group incurred only insignificant top-up taxes in jurisdictions outside of Switzerland.
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.