Notes to the Consolidated Financial Statements

1. Basic information

2. Changes in Group structure

3. Summary of significant accounting policies

4. Risk assessment and management

5. Management of capital

6. Trade accounts receivable

7. Other current assets and current financial assets

8. Inventories

9. Property, plant and equipment

10. Other non-current assets and non-current financial assets

11. Goodwill and intangible assets

12. Short-term debt

13. Other current liabilities and provisions

14. Long-term debt

15. Financial instruments

16. Retirement benefit plans

17. Participation plans

18. Deferred tax assets and liabilities

19. Other non-current liabilities and provisions

20. Contingencies

21. Capital stock and treasury shares

22. Earnings per share

23. Other operating expenses, net

24. Financial result, net

25. Income tax expenses

  2020 2019
Current taxes 113.9 103.9
Deferred taxes -1.9 -8.0
Total income tax expenses 112.0 95.9

The differences between income tax expenses computed at the weighted-average applicable tax rate of the Group of 15.1% (PY: 15.1%) and the effective income tax expenses were as follows:

  2020 2019
Income tax expenses, at applicable rate 114.1 112.1
Operating losses with no current tax benefit 1.3 0.0
Offsetting of current profits against loss carryforwards without tax assets -1.5 -1.6
Changes in future tax rates -1.5 -3.4
Non-deductible expenses and non-taxable income, net 1.8 2.5
Other -2.2 -13.7
Total income tax expenses 112.0 95.9

The decrease of the position “Other” in 2020 is caused by the reversal of several tax provisions, which were no longer used, and capitalised loss carryforwards in the previous year.

Swiss Tax Reform

On 19 May 2019, the Swiss electorate passed the Federal Act on Tax Reform and AHV Financing (TRAF). With this vote, the new tax law in the Canton of St. Gallen also entered into force. Under this reform, the tax regimes for holding companies, domiciliary companies and mixed companies, which are no longer accepted internationally, were abolished with effect from 1 January  2020. Some Swiss Geberit companies are also affected by this. In return, the cantons reduced the ordinary corporate tax rates and introduced internationally acceptable tax benefits, from which selected subsidiaries will also benefit. The ordinary tax rate for the Group companies domiciled in the Canton of St. Gallen was reduced from 17.4% to 14.5% as at 1 January 2020. The deferred taxes of these companies were adjusted accordingly as at 31 December 2019.

26. Research and development cost

27. Free Cashflow

28. Segment reporting

29. Related party transactions

30. Foreign exchange rates

31. Subsequent events

32. Group companies as of 31 December 2020


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