Annual report 2014

5 Current and deferred taxes

The income tax assets of EUR 48 million (previous year: EUR 41 million) concern in particular withholding tax receivables in connection with dividends received. The income tax liabilities of EUR 18 million (previous year: EUR 12 million) essentially contain the income taxes to be paid for the financial year.

Deferred taxes are calculated using the respective local tax rates. Changes in tax rates that were enacted up until the reporting date have already been taken into account. The income tax rates applied in the relevant countries varied between 10.0 per cent and 39.0 per cent (previous year: 10.0 per cent and 39.0 per cent).

The following deferred tax assets and liabilities exist for temporary differences in the individual items of the statement of financial position, and for tax loss carryforwards:

Enlarge table
  31 Dec. 2014 31 Dec. 2013
EUR million Deferred
tax assets
Deferred tax
liabilities
Deferred
tax assets
Deferred tax
liabilities
Property, plant and equipment 11 38 12 31
Intangible assets 7 87 5 77
Miscellaneous non-current assets 2 8 1 11
Current assets 21 17 23 4
Non-current liabilities 15 1 18 1
Non-current provisions 67 1 43 6
Current provisions 9 1 9 1
Other current liabilities 8 10 2 11
Derivative financial instruments 8 3 11 6
Tax loss carryforwards 2 5
Less offsetting 115 115 98 98
  35 51 31 50

Deferred tax assets include EUR 11 million (previous year: EUR 14 million) for companies that were making losses in the financial year or the previous year. These items are recognised, as future taxable profits are expected for these companies.

Trade tax loss carryforwards of EUR 877 million (previous year: EUR 852 million) and unused corporate tax and similar foreign loss carryforwards of EUR 515 million (previous year: EUR 475 million) exist in the Haniel Group, for which no deferred tax assets were recognised in the statement of financial position, given that the realisation of the deferred tax assets is not deemed to be sufficiently certain from today’s point of view. Of these tax loss carryforwards, EUR 52 million (previous year: EUR 48 million) expire within five years and an additional EUR 22 million (previous year: EUR 19 million) within 15 years.

In accordance with IAS 12, no deferred tax liabilities are recognised for retained earnings of subsidiaries and investments accounted for at equity because the company can control the reversal effect and therefore it is probable that the temporary differences will not be reversed in the foreseeable future. Therefore no deferred tax liabilities are recognised for temporary differences from subsidiaries and investments accounted for at equity in the amount of EUR 59 million (previous year: EUR 56 million).