- The Stories
- Investor Relations
- Corporate Governance
- 1 Group structure and shareholders
- 2 Capital structure
- 3 Board of Directors
- 4 Management
- 5 Content and method of determining compensation and stock option plans
- 6 Shareholders’ participation rights
- 7 Change of control and defense measures
- 8 Statutory auditors
- 9 Information policy
- 10 Blackout periods
- Compensation Report
- Financial Report 2023
- Chief Financial Officer’s Report
- Five-year consolidated data
- Consolidated financial statements
- Notes to the consolidated financial statements
- 1 Reporting entity
- 2 Summary of material accounting policies
- 3 Scope of consolidation
- 4 Sales – revenue from contracts with customers
- 5 Sales – income from operating lease arrangements (group as lessor)
- 6 Segment information
- 7 Operating expenses by nature
- 8 Research and development
- 9 Other operating result
- 10 Financial result
- 11 Earnings per share
- 12 Employee benefits
- 13 Income taxes
- 14 Cash and cash equivalents
- 15 Other current financial assets
- 16 Trade accounts receivable
- 17 Inventories
- 18 Non-current financial assets
- 19 Property, plant and equipment
- 20 Right-of-use assets (group as lessee)
- 21 Intangible assets and goodwill
- 22 Financial liabilities
- 23 Contract liabilities
- 24 Government grants
- Statutory Auditor´s Report on the Consolidated Financial Statements
- Balance sheet of Tecan Group Ltd.
- Income statement of Tecan Group Ltd.
- Notes to the financial statements of Tecan Group Ltd.
- 1 Reporting entity
- 2 Summary of significant accounting policies
- 3 Investments in subsidiaries
- 4 Bond
- 5 Provision for general business risks
- 6 Shareholders’ equity
- 7 Number of employees
- 8 Number of shares and share options
- 9 Guarantees in favor of third parties
- 10 Liabilities from lease arrangements not included in the balance sheet
- 11 Subsequent events
- 12 Information according to article 663c of the Swiss code of obligations
- Statutory Auditor`s Report on the Financial Statements of Tecan Group Ltd.
- Performance of the Tecan share in 2023
13 INCOME TAXES
13.1 INCOME TAXES IN STATEMENT OF PROFIT OR LOSS AND RECONCILIATION
| 2022 | 2023 |
CHF 1,000 |
|
|
Current income taxes | 37,074 | 33,659 |
Deferred income taxes | (15,715) | (31,929) |
|
|
|
Total income taxes | 21,359 | 1,730 |
The income tax expense can be analyzed as follows:
| 2022 | 2023 |
CHF 1,000 |
|
|
Profit before taxes | 142,485 | 133,805 |
|
|
|
Tax expense based on the Group’s weighted average rate of 19.4% (2022: 19.8%) | 28,155 | 25,957 |
|
|
|
Deferred taxes: tax rate change on opening deferred taxes and tax rate used for | 1,611 | (1,482) |
Non-deductible expenses and additional taxable income | 5,157 | 3,776 |
Tax-free income and tax reductions | (1,489) | (2,458) |
Transitional measures from Swiss tax reform1 | (12,945) | (23,188) |
Unrecoverable withholding tax | (108) | (766) |
Under/(over) provided in prior years | 978 | (109) |
|
|
|
Tax expense reported | 21,359 | 1,730 |
1 See note 13.2.3
The tax rate of the Group is the weighted average tax rate obtained by applying the currently effective rate for each individual jurisdiction to its respective profit before taxes. As a result of changes in the country mix of the profit before taxes, the Group’s expected tax rate for 2023 decreased to 19.4%.
13.2 DEFERRED INCOME TAXES
13.2.1 Amounts recognized in the financial statements
Amounts recognized and movements in deferred tax assets and liabilities:
|
|
| 31.12.2022 | |||||
| Net balance at January 1 | Recognized | Translation differences | Net | Deferred tax assets | Deferred tax liabilities | ||
in profit or loss | in OCI1 | directly in equity | ||||||
CHF 1,000 |
|
|
|
|
|
|
|
|
Deferred taxes arising from temporary differences |
|
|
|
|
|
| ||
Receivables and contract assets | (3,900) | 3,128 | - | - | (141) | (913) | 794 | (1,707) |
Inventories | 18,558 | (2,824) | - | - | (197) | 15,537 | 16,075 | (538) |
Property, plant and equipment | (3,497) | 45 | - | - | (48) | (3,500) | 190 | (3,690) |
Right-of-use assets | (13,242) | 1,107 | - | - | 93 | (12,042) | 288 | (12,330) |
Intangible assets | (86,879) | 8,637 | - | - | (1,299) | (79,541) | - | (79,541) |
Liabilities and accrued expenses | 22,381 | (2,222) | - | - | (9) | 20,150 | 20,726 | (576) |
Deferred revenue | 4,337 | 3,732 |
|
| (64) | 8,005 | 8,005 | - |
Liability for post-employment benefits | 8,921 | 281 | (5,737) | - | (41) | 3,424 | 3,424 | - |
Provisions | 3,598 | 768 | - | (2,319) | 9 | 2,056 | 5,802 | (3,746) |
Other | (546) | (1,750) | - | - | (8) | (2,304) | 279 | (2,583) |
|
|
|
|
|
|
|
|
|
Subtotal | (50,269) | 10,902 | (5,737) | (2,319) | (1,705) | (49,128) | 55,583 | (104,711) |
|
|
|
|
|
|
|
|
|
Expected tax benefits from |
|
|
|
|
|
|
|
|
Tax loss carry-forwards | 4,694 | (864) | - | - | 87 | 3,917 | 3,917 | - |
Swiss tax reform | 8,755 | 5,537 | - | - | - | 14,292 | 14,292 | - |
|
|
|
|
|
|
|
|
|
Deferred taxes provided on expected dividends from subsidiaries | (2,460) | 108 | - | - | - | (2,352) | - | (2,352) |
|
|
|
|
|
|
|
|
|
Offsetting |
|
|
|
|
|
| (44,155) | 44,155 |
|
|
|
|
|
|
|
|
|
Total | (39,280) | 15,683 | (5,737) | (2,319) | (1,618) | (33,271) | 29,637 | (62,908) |
- Other comprehensive income
|
|
| 31.12.2023 | |||||
| Net balance at January 1 | Recognized | Translation differences | Net | Deferred tax assets | Deferred tax liabilities | ||
in profit or loss | in OCI1 | directly in equity | ||||||
CHF 1,000 |
|
|
|
|
|
|
|
|
Deferred taxes arising from temporary differences |
|
|
|
|
|
| ||
Receivables and contract assets | (913) | (825) | - | - | (1) | (1,739) | 538 | (2,277) |
Inventories | 15,537 | 3,128 | - | - | (1,483) | 17,182 | 17,717 | (535) |
Property, plant and equipment | (3,500) | 1,885 | - | - | 203 | (1,412) | 642 | (2,054) |
Right-of-use assets | (12,042) | (90) | - | - | 875 | (11,257) | 307 | (11,564) |
Intangible assets | (79,541) | 9,328 | - | - | 6,508 | (63,705) | - | (63,705) |
Liabilities and accrued expenses | 20,150 | (1,169) | - | - | (1,543) | 17,438 | 18,019 | (581) |
Deferred revenue | 8,005 | 217 |
|
| (734) | 7,488 | 7,488 |
|
Liability for post-employment benefits | 3,424 | (818) | 5,265 | - | (43) | 7,828 | 7,828 | - |
Provisions | 2,056 | 1,176 | - | (790) | (198) | 2,244 | 5,852 | (3,608) |
Other | (2,304) | 824 | - | - | 56 | (1,424) | 13 | (1,437) |
|
|
|
|
|
|
|
|
|
Subtotal | (49,128) | 13,656 | 5,265 | (790) | 3,640 | (27,357) | 58,404 | (85,761) |
|
|
|
|
|
|
|
|
|
Expected tax benefits from |
|
|
|
|
|
|
|
|
Tax loss carry-forwards | 3,917 | (564) | - | - | (316) | 3,037 | 3,037 | - |
Swiss tax reform | 14,292 | 18,054 | - | - | - | 32,346 | 32,346 | - |
|
|
|
|
|
|
|
|
|
Deferred taxes provided on expected dividends from subsidiaries | (2,352) | 776 | - | - | - | (1,576) | - | (1,576) |
|
|
|
|
|
|
|
|
|
Offsetting |
|
|
|
|
|
| (42,032) | 42,032 |
|
|
|
|
|
|
|
|
|
Total | (33,271) | 31,922 | 5,265 | (790) | 3,324 | 6,450 | 51,755 | (45,305) |
- Other comprehensive income
Temporary differences on intangible assets primarily relate to assets recognized during the purchase price allocation process for business combinations.
13.2.2 Tax benefits from tax loss carry-forwards
Deferred tax assets related to tax loss carry-forwards:
| Gross value of tax loss | Tax benefits | ||
| 31.12.2022 | 31.12.2023 | 31.12.2022 | 31.12.2023 |
CHF 1,000 |
|
|
|
|
Expiring in |
|
|
|
|
1st - 5th year |
|
| - | - |
6th year or beyond |
|
| 1,875 | 1,178 |
Unlimited |
|
| 2,042 | 1,859 |
|
|
|
|
|
Tax loss carry-forwards capitalized |
|
| 3,917 | 3,037 |
|
|
|
|
|
Expiring in |
|
|
|
|
1st - 5th year | - | - | - | - |
6th year or beyond | 12,477 | 13,844 | 871 | 967 |
Unlimited | - | - | - | - |
|
|
|
|
|
Tax loss carry-forwards not capitalized | 12,477 | 13,844 | 871 | 967 |
|
|
|
|
|
Total tax loss carry-forwards | 12,477 | 13,844 | 4,788 | 4,004 |
13.2.3 Tax benefits from the Swiss tax reform
On May 19, 2019, the Swiss electorate passed the Federal Act on Tax Reform and AHV Financing (TRAF). The tax reform abolished the tax regimes for holding, domiciliary and mixed companies as of January 1, 2020 and introduced new tax calculation principles. As part of the TRAF and cantonal tax practice, transitional measures were introduced to ease the transition from the current reliefs to the new tax calculation principles. For the Group, these measures allow amongst others the tax-effective amortization of a step-up amount over a period of up to 10 years. Therefore, the Group started to capitalize corresponding deferred tax assets in 2019.
Tax benefits related to the step-up mechanism that are not capitalized at year-end:
| Gross value of tax benefits not capitalized | Tax benefits | |||
| Year | 31.12.2022 | 31.12.2023 | 31.12.2022 | 31.12.2023 |
CHF 1,000 |
|
|
|
| |
Tax benefits available for |
|
|
|
| |
Federal taxes | Until 2029 | 16,537 | - | 1,144 | - |
Cantonal taxes | Until 2029 | 303,928 | 153,152 | 35,590 | 17,781 |
|
|
|
|
| |
Tax benefits not capitalized | 320,465 | 153,152 | 36,734 | 17,781 | |
13.2.4 Unrecognized deferred tax liabilities
On December 31, 2023, there are temporary differences of CHF 964 million (2022: CHF 1’041 million) related to investments in subsidiaries for which no deferred tax liabilities are recognized since the Group controls the timing of reversal of the temporary differences and it is probable that the temporary differences will not reverse in the foreseeable future.
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