| | 2024 | 2023 |
|---|---|---|
| Current taxes for the current period | -91 | -99 |
| Current taxes referring to previous periods | 156 | -6 |
| Total current tax | 66 | -105 |
| | | |
| Deferred taxes arising from current period | -448 | -169 |
| Total deferred tax | -448 | -169 |
| | | |
| Total income tax (expense) / gain | -383 | -275 |
The expected income tax expense is determined by applying the tax rate in the Netherlands to the result before tax. In 2024, this rate was 25.8% (2023: 25.8%). The enacted tax rate for 2025 will be 25.8%.
The impact of the current tax to previous periods is to a highly extent set off in the deferred taxes arising from current period.
| | 2024 | 2023 |
|---|---|---|
| Result before tax from continuing operations | 1,447 | 1,278 |
| Current tax rates | 25,8% | 25,8% |
| Expected income tax expense | -373 | -330 |
| | | |
| Effects of: | | |
| Tax on interest on other equity instruments | 15 | 12 |
| Tax-exempt dividend | 11 | 9 |
| Tax-exempt capital gains | -1 | 1 |
| Tax-exempt associates and joint ventures | 2 | 1 |
| Tax-exempt other income | -3 | 6 |
| Changes in impairments | -2 | -6 |
| Adjustments for taxes due on previous financial years | -15 | - |
| Other effects | -16 | 32 |
| | | |
| Total income tax (expense) / gain | -383 | -275 |
The result is almost entirely earned and taxable in the Netherlands.
The effective income tax rate is 26.5% (2023: 21.5%).
International Tax Reform – Pillar II Model rules (Amendments to IAS 12)
The EU Directive Pillar Two, implemented in the Netherlands as the “Wet minimum belasting”, and is effective for accounting periods beginning on or after 1 January 2024, applies to multinational enterprises and large-scale domestic groups with consolidated revenues of € 750 million or more in at least two out of the last four years. These revenues, as defined by the OECD, include any form of income and are therefore not limited to revenue recognised in accordance with IFRS 15. a.s.r. operates in the Netherlands as a large-scale domestic group and should, in principle, be subject to the top-up tax rules under Pilar 2. a.s.r. has determined that any top-up tax due under Pillar 2 is an income tax within the scope of IAS 12 and accounts for it as a current tax when it is incurred.
However, a.s.r. has assessed the potential exposure to Pillar 2 and does not expect the impact of the Pillar 2 income taxes to be material. This is because a.s.r. can rely on:
The domestic group exemption during the first five years after the Pillar 2 legislation comes into effect; and
The Transitional CbCR Safe Harbour rules during the first three years after the Pillar 2 legislation comes into effect, which allows a.s.r. to reduce the top-up tax to zero.
Although a.s.r. could reduce any top-up tax to zero during the first five years by applying a combination of the domestic group exemption and the Transitional CbCR Safe Harbour rules, a.s.r. notes that it applies the temporary mandatory relief from recognising and disclosing information about deferred taxes related to Pillar 2 income taxes.
a.s.r. will continue to monitor the developments of Pillar 2 legislation, the applicability of the domestic group exemption, and the applicability of the CbCR Safe Harbour rules on the Group's financial position.