18. Income tax

Paid or outstanding income taxes and deferred taxes are shown under the item income taxes. Income taxes are made up of corporation tax, a solidarity surcharge and trade tax. Companies domiciled in Germany pay corporation tax of 15.0 % and a solidarity surcharge of 5.5 % of the corporation tax expense. These companies and German-based subsidiaries with the legal form of limited partnerships are also liable for trade tax, which is imposed at different local rates. Trade tax does not reduce the amount of a limited company’s profits on which corporation tax is payable.

Current income tax expenses include tax expenses from other accounting periods amounting to € 554 thousand (previous year: € - 35 thousand)

Deferred tax assets and liabilities result from temporary differences and tax loss carry-forwards.

Deferred taxes are calculated on the basis of the tax rates currently in force in Germany or those expected to apply at the time of realisation. A tax rate of 32.28 % was used for the calculations in both the reporting year and the previous year. This comprises corporation tax at 15.0 %, a solidarity surcharge of 5.5 % of corporation tax and the trade tax payable in Hamburg of 16.45 %. Limited partnerships are also liable to trade tax. Due to special rules, property management companies do not generally pay trade tax. Due to rules on minimum taxation, tax loss carry-forwards are only partially usable in Germany. Tax losses of up to € 1 million can be offset against taxable profits without restriction, and higher tax losses up to a maximum of 60 %.

Permanent differences only include items for which no deferred taxes are recognised due to their permanent nature. The year-on-year change is essentially due to the effects of deconsolidation.

The effects of tax rates for domestic and foreign taxes that diverge from the Group parent company’s tax rate are reported in offsetting and reconciliation under differences in tax rates.

Deferred tax assets are recognised on tax loss carry-forwards and temporary differences where it is sufficiently certain that they can be realised in the near future. The Group has corporation and trade tax loss carry-forwards of € 0 thousand (previous year: € 2,381 thousand) for which deferred tax assets of € 0 thousand (previous year: € 860 thousand) are recognised. Deferred taxes of € 0 thousand (previous year: € 6,008 thousand) are recognised on foreign tax loss carry-forwards of € 0 thousand (previous year: € 1,515 thousand). No deferred tax assets are recognised for domestic corporation tax loss carry-forwards of € 15,601 thousand (previous year: € 14,612 thousand), domestic trade tax loss carry-forwards of € 55,357 thousand (previous year: € 36,318 thousand) and foreign tax loss carry-forwards of € 28,328 thousand (previous year: € 32,119 thousand). Under current legislation, tax losses can be carried forward in Germany without restriction.

Deferred tax assets of € - 22,924 thousand (previous year: € 28,045 thousand) recognised directly in equity without effect on profit and loss come from actuarial gains and losses on pension provisions, cash flow hedges and unrealised gains/losses arising from financial assets measured at fair value.