Financial Statements 2023

4. Notes to the IFRS Company Financial Statements 4.2 Company Performance

9.

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 10: 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. On 19 December 2023, the government of the Netherlands, where the parent company is incorporated, enacted the Pillar Two income taxes legislation effective from 1 January 2024. Based on its assessment, the Company does not expect a material exposure to Pillar Two.

The expense for income taxes is comprised of the following:

2023

(In € million)

2022

Current tax income (expense)

2

(2)

Deferred tax income (expense)

0

(15)

Total

2

(17)

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

2023

(In € million)

2022

Profit (loss) before income taxes

6,882

452

Corporate income tax rate

25.8% 25.8%

Expected income (expense) for income taxes

(1,776)

(117)

Effects from tax rate differentials / Change of tax rate

0

0

Non ‑ taxable income from investment and associates

1,970

170

Income from other companies within the fiscal unity

(1)

(1)

Impairment on investment and associates

0

0

Other non ‑ deductible expenses and tax ‑ free income

(2)

(3)

(1)

Changes in valuation allowances

(190)

(66)

Reported income (expense) for income taxes

2

(17)

4

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

123

Airbus

Financial Statements 2023