International Tax Reform – Pillar II Model rules (Amendments to IAS 12)

The EU Directive Pillar Two (which is implemented in the Netherlands as the “Wet minimumbelasting”, and is effective for accounting periods beginning on or after 1 January 2024) apply to multinational enterprises and large scale domestic groups that have consolidated revenues (which, as defined by the OECD, include any form of income and are therefore not limited to revenue recognised in accordance with IFRS 15) of € 750 million in at least two out of the last four years. a.s.r. operates in the Netherlands as a large scale domestic group and expects to be subject to the top-up tax in relation to its operations in the Netherlands, where the statutory tax rate is 25.8%. If the top-up tax had applied in 2023, the profits relating to a.s.r.’s operations in the Netherlands for the year ended 31 December 2023 would not be subject to it, as the average effective tax rate applicable to these profits exceeds the 15% minimum effective tax rate.

a.s.r. has determined that the top-up tax (which it is required to pay under the Wet minimumbelasting), the relief from deferred tax accounting for Pillar II, is an income tax in the scope of IAS 12. a.s.r. has applied the temporary mandatory relief from deferred tax accounting for the impacts of the top-up tax and accounts for it as a current tax when it is incurred.