1.3Income taxes

INCOME TAXES

CHF 1,000

2025

2024

Current income taxes

2,538

6,208

Deferred income taxes

18,508

15,215

Total income taxes

21,046

21,423

The difference between the expected income tax expense and the income tax expense shown in the income statement can be explained as follows:

CHF 1,000

2025

2024

Result before taxes

173,084

267,929

Expected Group tax rate

14%

16%

Expected income taxes

24,232

42,869

Non-deductible expenses

71

147

Tax-free income

–2,470

–16,982

Use of non-capitalised tax losses carried forward

–1,020

–282

Non-capitalisable tax losses for the period

474

236

Expenses/income that are taxed at a lower/higher tax rate

–20

–4,618

Tax effects for prior periods

–222

54

Effective income tax charge

21,046

21,423

Effective tax rate

12%

8%

In 2025, the Group’s expected tax rate decreased to 14% (2024: 16%). This reduction is the direct result of the disposal of all Group companies of the Real Estate Services segment during 2024. These entities were subject to higher tax rates compared to the remainder of the Group. Their disposal has therefore led to a lower average applied tax rate for the Group.

The non-capitalised tax assets from losses carried forward amount to CHF 0.9 million (2024: CHF 1.0 million). Prepaid expenses include income taxes of CHF 1.2 million (2024: CHF 0.3 million). Accrued expenses include income taxes of CHF 3.4 million (2024: CHF 2.9 million).

Deferred tax liabilities

CHF 1,000

2025

2024

Deferred tax liabilities as at 1 January

155,957

140,839

Changes in scope of consolidation

-

–97

Changes from valuation of investment properties

15,567

14,881

Changes from disposal of investment properties

–396

–2,025

Other changes recognised in the income statement

3,335

2,359

Deferred tax liabilities as at 31 December

174,463

155,957

Accounting principles

The current income tax rates are applied in cantons with a two-tier system. In cantons with a single-tier system, there is a separate property gains tax with speculation surcharges or deductions for the period of ownership, depending on the holding period. For properties that are intended for sale, the actual holding period will apply. For the remaining properties, a residual holding period of 25 years will apply.

Deferred income taxes are calculated for each subsidiary using the local tax rates. The tax rates applied in the financial year and preceding years lie between 14% and 17%. Deferred tax liabilities are not discounted.

Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against which temporary differences or unused tax losses can be utilised.