Note 13 Taxes

Accounting principle

Taxes

Income tax consists of current tax and deferred tax. Income tax is recognized in profit/loss for the year except when the underlying transaction is recognized in other comprehensive income or equity, in which case the relevant tax is recognized in other comprehensive income respectively in equity.

Deferred tax is calculated according to the balance sheet method based on temporary differences between the reported and fiscal values of assets and liabilities. Valuation of deferred tax is based on how the underlying value of assets or liabilities is expected to be realized or regulated. Temporary differences for the difference generated by recognition of consolidated goodwill or the temporary difference from the acquisition of subsidiaries that are so-called asset acquisitions are not taken into account.

When shares in subsidiaries are acquired such acquisitions are either business combinations or an asset purchase. An asset purchase refers to, for example, acquiring a company that only owns one or more properties with tenancy agreements but the acquisition does not comprise the processes required to operate a business. In business combinations deferred tax is recognized at the nominally valid tax rate with no discount according to the principles presented above. When an asset is acquired deferred tax is not recognized at the time of acquisition. Instead the asset is recognized at a purchase value corresponding to the asset’s fair value after deductions for a discount received in the transaction for the current value of the fiscal value of future fiscal deductions regarding the difference between recognized and fiscal value that do not materialize. After the acquisition only deferred tax on temporary differences that occur after the acquisition is recognized.

Deferred tax assets in the form of deductible temporary differences and tax loss carry-forwards are recognized only when use of them is probable. The value of deferred tax assets is reduced when use of them is deemed no longer probable.

Recognized in the income statement

MSEK 2024 2023
Mkr 2024 2023
Current tax expenses/income Aktuell skattekostnad/skatteintäkt
Tax expenses for the year Årets skattekostnad -403 -372
Adjustment of tax attributable to previous years Justering av skatt hänförlig till tidigare år 2 -3
-401 -375
Deferred tax expenses/income Uppskjuten skattekostnad/skatteintäkt
Temporary differences Temporära skillnader -13 -180
Capitalized tax value of loss carry-forwards during the year Under året aktiverat skattevärde i underskottsavdrag 22 1
Utilisation of capitalized tax value of loss carry-forwards Utnyttjande av aktiverat skattevärde i underskottsavdrag -2 -7
Revaluation of recognized deferred tax values Omvärdering av redovisade värden av uppskjutna skatter 2 -37
9 -223
Total recognized tax expenses in the Group Totalt redovisad skattekostnad i koncernen -392 -598

Tax attributable to other comprehensive income

Pre-tax Tax After tax Pre-tax Tax After tax
MSEK 2024 2023
Före skatt Skatt Efter skatt Före skatt Skatt Efter skatt
Mkr 2024 2023
Translation difference for the year foreign operations Årets omräkningsdifferens utländska verksamheter 41 – 41 -145 – -145
Joint ventures other comprehensive income Joint ventures övrigt totalresultat -8 – -8 -4 – -4
Cash flow hedges Kassaflödessäkringar 13 -3 10 18 -4 14
Other comprehensive income Övrigt totalresultat 46 -3 43 -131 -4 -135

Reconciliation of effective tax

MSEK 2024 2023
Mkr 2024 2023
Pre-tax profit Resultat före skatt 2,780 % 2,586 %
Tax in accordance with tax rate for the parent company Skatt enligt gällande skattesats för moderbolaget -573 20.6 -533 20.6
Effect of other tax rates for foreign subsidiaries Effekt av andra skattesatser för utländska dotterföretag 9 -0.3 10 -0.4
Non-deductible expenses Ej avdragsgilla kostnader -34 1.2 -71 2.8
Tax exempt income Ej skattepliktiga intäkter 162 -5.8 82 -3.2
Deductible non profit-influencing items Avdragsgilla/skattepliktiga, ej resultatpåverkande poster 46 -1.6 -5 0.2
Revaluation of recognized deffered tax values Omvärdering av redovisade värden av uppskjutna skatter 2 -0.1 -37 1.4
Utilized non-capitalized loss carry-forwards Utnyttjade ej aktiverade underskottsavdrag 8 -0.3 3 -0.1
Tax attributable to previous years Skatt hänförlig till tidigare år 2 -0.1 -3 0.1
Increase in loss carry-forwards without corresponding capitalization of deferred tax Ökning av underskottsavdrag utan motsvarande aktivering av uppskjuten skatt -103 3.7 -76 2.9
Effect net profit of joint ventures Effekt nettoresultat joint ventures 89 -3.2 32 -1.2
Recognized effective tax Redovisad effektiv skatt -392 14.1 -598 23.1

Reported on the balance sheet, deferred tax recoverables and tax liabilities

Deferred tax recoverables Deferred tax liabilities Net Changes recognized in profit/loss for the year
MSEK 2024 2023 2024 2023 2024 2023 2024 2023
Uppskjuten skattefordran Uppskjuten skatteskuld Netto Förändringar redovisade i årets resultat
Mkr 2024 2023 2024 2023 2024 2023 2024 2023
Intangible assets Immateriella anläggningstillgångar -68 -91 -68 -91 23 3
Tangible assets Materiella anläggningstillgångar -824 -854 -824 -854 26 -27
Of which rights of use Varav nyttjanderätter -402 -435 -402 -435 33 -42
Investment property Förvaltningsfastigheter -6 -6 -6 -6 0 -1
Of which rights of use Varav nyttjanderätter -4 -4 -4 -4 0 0
Financial fixed assets Finansiella anläggningstillgångar 4 4 4 4 0 2
Project and development properties Projekt- och exploateringsfastigheter -682 -1,265 -682 -1,265 562 190
Of which rights of use Varav nyttjanderätter -39 -34 -39 -34 -4 33
Inventories Varulager 0 0 0 0 0 -5
Accounts receivable Kundfordringar 16 27 16 27 -11 9
Worked-up not invoiced income Upparbetad ej fakturerad intäkt 85 -18 -18 85 -104 12
Other receivables Övriga fordringar 33 9 33 9 24 -9
Interest-bearing liabilities Räntebärande skulder 907 1,714 907 1,714 -800 -366
Of which rights of use Varav nyttjanderätter 436 468 436 468 -34 7
Provisions for pensions Pensionsavsättningar 223 193 223 193 30 -14
Provisions Avsättningar 169 201 169 201 -32 67
Invoiced income not worked-up Fakturerad ej upparbetad intäkt -37 -127 -37 -127 90 51
Other liabilities Övriga skulder 231 110 231 110 121 -192
Loss carry-forwards Underskottsavdrag 142 118 142 118 22 -32
Tax allocation reserves Periodiseringsfonder -601 -644 -601 -644 43 88
Safety reserve Säkerhetsreserv – – – 1
Capitalized remaining negative net interest Aktivering av kvarstående negativa räntenetton 15 15 – 15 –
Tax recoverables/tax liabilities Skattefordringar/-skulder 1,740 2,461 -2,236 -2,987 -496 -526
Offset Kvittning -1,692 -2,364 1,692 2,364 – –
Net Netto 48 97 -544 -623 -496 -526 9 -223

 

Unrecognized deferred tax recoverables regarding loss carry-forwards

Ongoing correspondence with the Swedish Tax Authorities as well as assessments made together with external experts on the deductability of individual deductions have been taken into consideration when evaluating deferred tax recoverables. The judgement per 2024-12-31 as well as 2023-12-31 is that there are no uncertainties regarding the deductability of loss carry-forwards in Sweden and because of that tax recoverables of loss carry-forwards are recognized as assets without any adjustments.

In the Norwegian operations the ability to use loss carry-forwards of  SEK 1,437 million (1,168) remains uncertain. They have not been capitalized. The fiscal value of the non-capitalized loss carry-forward is SEK 316 million (257).

In the Danish operations the ability to use loss carry-forwards of SEK 30 million (48) is uncertain. They have not been capitalized. The fiscal value of the non-capitalized loss carry-forward is SEK 7 million (10).

Pillar Two

OECD’s Model Rules for Pillar Two apply to the Group. Pillar Two legislation has been adopted in Sweden January 1, 2024 where Peab AB is domiciled. The Group applies the temporary exception to the requirements to recognize and disclose information about deferred tax assets and liabilities related to Pillar Two income taxes, provided in the amendments to IAS 12 issued in May 2023. According to this legislation the Group is required to pay an additional tax for the difference between the effective tax rate calculated according to GloBE rules for each jurisdiction and the minimum tax rate of 15%.

Peab does not operate in low-tax countries and in all the countries where Peab does operate the tax rate is at least 19%. Peab can apply the temporary relief rules in the regulations. The Group does not anticipate any additional tax.