4.6 Income taxes

in CHF thousands

 

1.4.2024 to 31.3.2025

 

1.4.2023 to 31.3.2024

 

 

 

 

 

Income taxes in profit and loss

 

 

 

 

Current taxes

 

–104

 

0

Current taxes from previous year

 

0

 

0

Total current taxes

 

–104

 

0

 

 

 

 

 

Changes in tax loss carry forwards

 

–8

 

–31

Changes in valuation

 

–1 787

 

473

Changes in other positions

 

–231

 

–301

Total deferred taxes

 

–2 026

 

141

Total income taxes in profit and loss

 

–2 129

 

141

 

 

 

 

 

Income taxes in comprehensive income statement (OCI)

 

 

 

 

Current taxes in OCI

 

0

 

0

Deferred taxes in OCI

 

–5

 

–11

Total income taxes in comprehensive income statement (OCI)

 

–5

 

–11

In the 2024/25 financial year, the taxable annual result of Züblin Immobilien AG exceeded the losses carried forward from previous years and current income taxes were incurred accordingly. In the previous year, no current income taxes were incurred due to tax loss carryforwards.

In 2024/25, an expense from deferred income taxes of kCHF 2 026 was recognised, whereas in the previous year the adjustment of deferred taxes led to an income of kCHF 141. This change was mainly due to changes in the valuation of investment properties. These resulted in an increase of the deferred tax liability in the amount of kCHF 1 787, whereas in the previous year this led to a reversal of the deferred tax liability in the amount of kCHF 473.

The following table provides a reconciliation of income taxes at the reference tax rate to the income tax reported in the income statement:

Income tax reconciliation

in CHF thousands

 

1.4.2024 to 31.3.2025

 

1.4.2023 to 31.3.2024

 

 

 

 

 

Financial year

 

 

 

 

Profit before tax

 

10 814

 

1 197

Reference rate 1

 

17.84%

 

19.25%

Income taxes at reference rate

 

–1 929

 

–230

Income taxes recogized in Profit & Loss

 

–2 129

 

141

Difference

 

–200

 

371

Adjustments:

 

 

 

 

– Non tax-deductible expenses

 

–33

 

0

– Non-taxable income

 

17

 

0

– Change in temporary differences in connection with shares in subsidiaries

 

0

 

1

– Changes in tax rates on deferred tax positions

 

163

 

2

– Items taxed at other than reference rate

 

–369

 

429

– Changes in loss carry forwards not recognized

 

19

 

–61

– Income taxes from previous periods

 

0

 

0

– Others

 

3

 

0

1 17.84% (previous year 19.25%) is a weighted tax rate for the Group taking into consideration federal, cantonal and municipal tax.

Estimates are necessary for the determination of current as well as deferred taxes. These assumptions relate to the following:

Current tax

The Züblin Group is subject to taxation in Switzerland as well as in the countries where its subsidiaries operate. The determination of the provision for current taxes in these jurisdictions requires significant judgment by Executive Management, as the final tax position of many transactions and calculations is unclear.

Deferred tax

Capital gains tax is included in the calculation of deferred taxes on investment properties in Switzerland. These taxes are dependent upon the holding period of the assets, which is determined as follows: for properties that are held for sale, the actual holding period plus one year has been used. For all other properties, either a period of fifteen years, or the actual holding period plus one year if greater than fifteen years, has been assumed. Assumptions are also necessary for deferred tax assets from tax loss carry-forwards. These losses are only capitalized when the use of the losses in the future is probable. The determination as to whether such losses can be offset in the future is based on estimates of the future cash flows deriving from the property, together with estimates by Group Management on the likelihood of utilization of these loss carry-forwards in future periods. Based upon these factors, a probability is assigned to each potential asset and subsequently valued and recorded.