Income Tax (Tables)
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12 Months Ended |
Dec. 31, 2022 |
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| Major components of tax expense (income) [abstract] |
|
| Summary of Income Tax Expense |
Income tax expense is as follows:
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For the year ended December 31, |
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2022 |
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2021 |
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2020 |
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(EUR thousand) |
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Current income tax: |
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|
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Current Taxes |
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57,400 |
|
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|
35,093 |
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28,604 |
|
Prior Years Taxes |
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|
215 |
|
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|
(6,544 |
) |
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|
918 |
|
Deferred tax: |
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Deferred Taxes |
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(12,990 |
) |
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2,855 |
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|
(11,840 |
) |
Income tax expense reported in the statement of profit or loss |
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44,625 |
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31,404 |
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17,682 |
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| Summary of Deferred Tax Charged to OCI |
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For the year ended December 31, |
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2022 |
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2021 |
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2020 |
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(EUR thousand) |
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Deferred tax related to items recognized in OCI during in the year: |
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Gains/(losses) from remeasurement of employee of defined benefit plans and of agent termination plans |
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(236 |
) |
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26 |
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|
15 |
|
Change in the fair value of hedging instruments |
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(2,043 |
) |
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(653 |
) |
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173 |
|
Deferred tax charged to OCI |
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|
(2,279 |
) |
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(627 |
) |
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|
188 |
|
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| Schedule of Reconciliation of Effective Tax Rate |
The table below provides a reconciliation between actual income tax expense and the theoretical income tax expense, calculated on the basis of the applicable corporate tax rate in effect in Italy.
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For the year ended December 31, |
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2022 |
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2021 |
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2020 |
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(EUR thousand) |
|
Accounting profit before income tax |
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187,641 |
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165,673 |
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|
96,279 |
|
Statutory income tax rate of 27.9% |
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52,202 |
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46,223 |
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26,862 |
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Prior years taxes |
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215 |
|
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|
(6,544 |
) |
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|
918 |
|
DTA recognized on tax losses carry-forward |
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|
750 |
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(1,947 |
) |
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(41 |
) |
Taxes effect on unremitted earnings |
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1,488 |
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|
400 |
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1,248 |
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Step up |
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— |
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— |
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(7,926 |
) |
Change notional rate |
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— |
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— |
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361 |
|
Tax grants/not taxable items |
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(8,477 |
) |
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(1,157 |
) |
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(2,146 |
) |
Tax exemption on gain from the sale of an associate |
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— |
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(3,378 |
) |
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— |
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Different foreign tax rate effect |
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(1,553 |
) |
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(2,193 |
) |
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(1,594 |
) |
At the effective income tax rate of 23.78% (18.96% in 2021, 18.40% in 2020) |
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44,625 |
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31,404 |
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|
17,682 |
|
Income tax expense reported in the statement of profit or loss |
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44,625 |
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31,404 |
|
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|
17,682 |
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| Summary of Timing of Tax Losses Carryforwards |
The breakdown on the timing of tax losses carry-forwards is as follows:
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At December 31, |
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At December 31, |
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2022 |
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2021 |
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(EUR thousand) |
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Timing of unrecognized tax losses carry-forwards |
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2022 |
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— |
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16 |
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2023 |
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|
336 |
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|
320 |
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2024 |
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|
369 |
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|
351 |
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2025 |
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|
331 |
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|
315 |
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2026 |
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|
334 |
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|
318 |
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2027 |
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3,860 |
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|
274 |
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2028 |
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|
404 |
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— |
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2029 |
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|
129 |
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— |
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Unlimited |
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2,215 |
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|
2,206 |
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Total unrecognized tax losses |
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7,978 |
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|
3,800 |
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| Summary of Deferred Tax Assets and Deferred Tax Liabilities |
The analysis of deferred tax assets and deferred tax liabilities as at December 31, 2022 and 2021 is as follows:
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Consolidated statement
of financial position |
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At December 31, |
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At December 31, |
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2022 |
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2021 |
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(EUR thousand) |
|
Other intangible assets |
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(4,179 |
) |
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(3,167 |
) |
Tangible assets |
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19,746 |
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|
12,178 |
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Work in progress |
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(12,329 |
) |
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(5,156 |
) |
Revaluations of investment properties to fair value |
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6,807 |
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|
8,009 |
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Expected credit losses of debt financial assets |
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1,217 |
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1,429 |
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Derivatives |
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(1,640 |
) |
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|
403 |
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Leases |
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331 |
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251 |
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Long term incentives |
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51 |
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816 |
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Cash settled awards |
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— |
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|
325 |
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Provisions |
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6,631 |
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|
2,351 |
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Accruals and other provisions |
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|
164 |
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|
62 |
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Tax losses carry forward |
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26,941 |
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14,888 |
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Dividends |
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(2,260 |
) |
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(1,300 |
) |
Start up costs IPO SG spa |
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4,026 |
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5,369 |
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Share-based compensation plans |
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325 |
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— |
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Other effects |
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2,427 |
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|
314 |
|
Deferred tax assets, net |
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|
48,258 |
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|
36,772 |
|
Reflected in the statement of financial position as follows: |
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Deferred tax assets |
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|
69,210 |
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|
55,877 |
|
Deferred tax liabilities |
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|
(20,952 |
) |
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|
(19,105 |
) |
Deferred tax assets, net |
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|
48,258 |
|
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|
36,772 |
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| Schedule of Reconciliation of Net Deferred Tax Assets |
The reconciliation of net deferred tax assets is as follows:
|
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|
2022 |
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|
2021 |
|
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|
(EUR thousand) |
|
As of January 1 |
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|
36,772 |
|
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|
33,929 |
|
Tax expense during the period recognized in profit or loss |
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|
12,990 |
|
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|
(2,855 |
) |
Tax income/(expense) during the period recognized in OCI |
|
|
(2,279 |
) |
|
|
(627 |
) |
DTA on IPO transaction costs on capital increase |
|
|
— |
|
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|
6,711 |
|
Other effect |
|
|
775 |
|
|
|
(386 |
) |
As at December 31 |
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|
48,258 |
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|
36,772 |
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