Airbus - Financial Statements 2022

4. Notes to the IFRS Company Financial Statements Company Performance

10.

Income Taxes

The Company is tax registered in the Netherlands. The Company is heading a fiscal unity, which also includes Airbus Defence and Space Netherlands B.V. Until 31 December 2021 Airbus Group Finance B.V. was included (see “– Note 11: Investments in Subsidiaries, Associates and Participations” of the Company Financial Statements). Therefore the Company is severally and jointly liable for income tax liabilities of the fiscal unity as a whole. Income taxes — The tax expense for the year comprises deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised directly in Other Comprehensive Income.

The amount of income tax included in the Income Statement is determined in accordance with the rules established by the tax authorities in the Netherlands, based on which income taxes are payable or recoverable. Deferred tax assets and/or liabilities, arising from temporary differences between the carrying amounts of assets and liabilities and the tax base of assets and liabilities, are calculated using the substantively enacted tax rates expected to apply when they are realised or settled. Deferred tax assets are recognised if it is probable that they will be realised.

The expense for income taxes is comprised of the following:

2022

2021

(In € million)

Current tax income (expense)

(2)

0

Deferred tax income (expense)

(15)

1

Total

(17)

1

The following table shows reconciliation from the theoretical income tax (expense) using the Dutch corporate tax rate to the reported income tax (expense):

2022

2021

(In € million)

Profit (loss) before income taxes

452

(115)

Corporate income tax rate

25.8%

25.0%

Expected income (expense) for income taxes

(117)

29

Effects from tax rate differentials / Change of tax rate

0

3

Non ‑ taxable income from investment and associates

170

18

Income from other companies within the fiscal unity

(1)

0

Impairment on investment and associates

0

34

Other non ‑ deductible expenses and tax ‑ free income

(3)

22

(1)

Changes in valuation allowances

(66)

(105)

Reported income (expense) for income taxes

(17)

1

(1) Reassessment of recoverability of deferred tax assets based on future taxable profits.

107