Income Tax (Tables)
|
12 Months Ended |
Dec. 31, 2023 |
|---|
| Major components of tax expense (income) [abstract] |
|
| Summary of Income Tax Expense |
Income tax expense is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
|
(EUR thousand) |
|
Current income tax: |
|
|
|
|
|
|
|
|
|
Current Taxes |
|
|
62,610 |
|
|
|
57,400 |
|
|
|
35,093 |
|
Prior Years Taxes |
|
|
(1,932 |
) |
|
|
215 |
|
|
|
(6,544 |
) |
Deferred tax: |
|
|
|
|
|
|
|
|
|
Deferred Taxes |
|
|
(16,815 |
) |
|
|
(12,990 |
) |
|
|
2,855 |
|
Income tax expense reported in the statement of profit or loss |
|
|
43,863 |
|
|
|
44,625 |
|
|
|
31,404 |
|
|
| Summary of Deferred Tax Charged to OCI |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
|
(EUR thousand) |
|
Deferred tax related to items recognized in OCI during in the year: |
|
|
|
|
|
|
|
|
|
Gains/(losses) from remeasurement of employee of defined benefit plans and of agent termination plans |
|
|
15 |
|
|
|
(236 |
) |
|
|
26 |
|
Change in the fair value of hedging instruments |
|
|
932 |
|
|
|
(2,043 |
) |
|
|
(653 |
) |
Deferred tax charged to OCI |
|
|
947 |
|
|
|
(2,279 |
) |
|
|
(627 |
) |
|
| 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
|
(EUR thousand) |
|
Accounting profit before income tax |
|
|
189,553 |
|
|
|
187,641 |
|
|
|
165,673 |
|
Statutory income tax rate of 27.9% |
|
|
52,885 |
|
|
|
52,202 |
|
|
|
46,223 |
|
Prior years taxes |
|
|
(1,932 |
) |
|
|
215 |
|
|
|
(6,544 |
) |
DTA not recognized on tax losses carry-forward |
|
|
1,854 |
|
|
|
750 |
|
|
|
(1,947 |
) |
DTA on temporary/tax losses non recognized |
|
|
(2,810 |
) |
|
|
— |
|
|
|
— |
|
Taxes effect on unremitted earnings |
|
|
827 |
|
|
|
1,488 |
|
|
|
400 |
|
Tax grants/not taxable items |
|
|
(5,097 |
) |
|
|
(8,477 |
) |
|
|
(1,157 |
) |
Tax exemption on gain from the sale of an associate |
|
— |
|
|
|
— |
|
|
|
(3,378 |
) |
Different foreign tax rate effect |
|
|
(2,244 |
) |
|
|
(1,553 |
) |
|
|
(2,193 |
) |
DTA/DTL effect previous years |
|
|
380 |
|
|
|
— |
|
|
|
— |
|
At the effective income tax rate of 23.1% (23.8% in 2022, 19.0% in 2021) |
|
|
43,863 |
|
|
|
44,625 |
|
|
|
31,404 |
|
Income tax expense reported in the statement of profit or loss |
|
|
43,863 |
|
|
|
44,625 |
|
|
|
31,404 |
|
The Group's effective tax rate for the year ended December 31, 2023, decreased to 23.1% compared to 23.8% for the year ended December 31, 2022. Considering that the accounting profit before income tax is basically unchanged, the lower tax impact is due to a sum of several different effects, as explained in the table above.
The Group's e
|
| Summary of Timing of Tax Losses Carryforwards |
The breakdown on the timing of tax losses carry-forwards is as follows:
|
|
|
|
|
|
|
|
|
|
|
At December 31, |
|
|
At December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
|
(EUR thousand) |
|
Timing of unrecognized tax losses carry-forwards |
|
|
|
|
|
|
2023 |
|
— |
|
|
|
336 |
|
2024 |
|
— |
|
|
|
369 |
|
2025 |
|
— |
|
|
|
331 |
|
2026 |
|
— |
|
|
|
334 |
|
2027 |
|
— |
|
|
|
3,860 |
|
2028 |
|
— |
|
|
|
404 |
|
2029 |
|
— |
|
|
|
129 |
|
Unlimited |
|
|
8,377 |
|
|
|
2,215 |
|
Total unrecognized tax losses |
|
|
8,377 |
|
|
|
7,978 |
|
The change in unrecognized tax losses is related to both the recognition of deferred tax assets and the use of tax losses expiring within 2029.
|
| Summary of Deferred Tax Assets and Deferred Tax Liabilities |
The analysis of deferred tax assets and deferred tax liabilities as at December 31, 2023 and 2022 is as follows:
|
|
|
|
|
|
|
|
|
|
|
At December 31, |
|
|
At December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
|
(EUR thousand) |
|
Intangible assets |
|
|
(1,649 |
) |
|
|
(4,179 |
) |
Property, plant and equipment |
|
|
30,150 |
|
|
|
19,746 |
|
Contract balances |
|
|
(13,552 |
) |
|
|
(12,329 |
) |
Revaluations of investment properties to fair value |
|
|
5,712 |
|
|
|
6,807 |
|
Expected credit losses |
|
|
1,279 |
|
|
|
1,217 |
|
Derivatives |
|
|
(708 |
) |
|
|
(1,640 |
) |
Leases |
|
|
308 |
|
|
|
331 |
|
Long term incentives |
|
|
12 |
|
|
|
51 |
|
Provisions |
|
|
6,845 |
|
|
|
6,631 |
|
Accruals and other provisions |
|
|
578 |
|
|
|
164 |
|
Tax losses carry forward |
|
|
36,251 |
|
|
|
26,941 |
|
Unremitted earnings |
|
|
(2,260 |
) |
|
|
(2,260 |
) |
Start up costs IPO SG spa |
|
|
2,684 |
|
|
|
4,026 |
|
Share-based compensation plans |
|
— |
|
|
|
325 |
|
Other effects |
|
|
977 |
|
|
|
2,427 |
|
Deferred tax assets, net |
|
|
66,627 |
|
|
|
48,258 |
|
Reflected in the statement of financial position as follows: |
|
|
|
|
|
|
Deferred tax assets |
|
|
76,251 |
|
|
|
69,210 |
|
Deferred tax liabilities |
|
|
(9,624 |
) |
|
|
(20,952 |
) |
Deferred tax assets, net |
|
|
66,627 |
|
|
|
48,258 |
|
|
| Schedule of Reconciliation of Net Deferred Tax Assets |
The reconciliation of net deferred tax assets is as follows:
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
|
(EUR thousand) |
|
As of January 1 |
|
|
48,258 |
|
|
|
36,772 |
|
Tax expense during the period recognized in profit or loss |
|
|
16,815 |
|
|
|
12,990 |
|
Tax income/(expense) during the period recognized in OCI |
|
|
947 |
|
|
|
(2,279 |
) |
Other effect |
|
|
607 |
|
|
|
775 |
|
As at December 31 |
|
|
66,627 |
|
|
|
48,258 |
|
|