1.6Income taxes
Income tax expense
in CHF mn | 2025 | 2024 |
Current income taxes | -13.0 | -14.2 |
Deferred income taxes | 5.1 | 7.7 |
Total | -7.9 | -6.6 |
Analysis of tax expense
in CHF mn | 2025 | 2024 |
Income / (loss) before taxes (EBT) | 44.5 | 37.7 |
Weighted average income tax rate | 20.6% | 23.9% |
Expected tax expense (using weighted average tax rates) | 9.2 | 9.0 |
Credits and income taxes incurred from previous periods | -0.6 | -4.4 |
Use of previously unrecognised loss carryforwards | -6.5 | -1.3 |
Unrecognised deferred tax assets on tax loss carryforwards | 0.7 | 8.0 |
Impact of Swiss participation exemption and other non-taxable items | 4.6 | 15.5 |
Expenses not deductible from tax and income not credited to the income statement | 0.6 | - |
Change in deferred taxes due to change in tax rates | 0.2 | 0.8 |
Tax effects on investments | -0.1 | -20.9 |
Other impacting items | 0.0 | -0.1 |
Income taxes | 7.9 | 6.6 |
Effective tax rate | 17.8% | 17.4% |
The effective tax rate changed from 17.4% to 17.8%. The deviation from the expected tax rate was mainly due to the use of previously non-capitalised loss carryforwards, the impact of the Swiss participation exemption and other non-taxable items.
The expected average tax rate equals the weighted average of the rates of the consolidated companies. Both positive and negative results for the individual companies feed into the calculation for the expected tax rate, taking into account the applicable tax rates in each case.
The use of previously non-capitalised loss carryforwards results from the assessment that the earning power of the companies concerned will be better than previously expected in order to realise the losses incurred. In 2025, the impact of the Swiss participation exemptions and other non-taxable items was largely associated with the participation exemptions on dividends from subsidiaries and associates. The tax effects on investments include tax-neutral changes in value arising from the reassessment of investments in associates/joint ventures and the impacts that result from value allowances and reversals of value allowances on investment carrying values under commercial law (without any deferred tax consequences), and also reduce tax expenses for 2025.
On 8 October 2021, 136 countries agreed on a two-pillar concept for international tax reform (the OECD Inclusive Framework). The recommendations under Pillar I of the Inclusive Framework include a reallocation of part of the taxes to the market countries, while Pillar II sets the objective of a global effective minimum tax rate (ETR) of 15%. TX Group falls within the scope of Pillar II of the OECD Inclusive Framework. Both Switzerland and other countries where TX Group is active have introduced global minimum taxation (Pillar II) for financial years beginning on or after 1 January 2024. In Switzerland, the levying of a national top-up tax from 1 January 2024 (for financial years beginning on or after 1 January 2024) and the levying of the international top-up tax in accordance with the Income Inclusion Rule (IIR) from 1 January 2025 (for financial years beginning on or after 1 January 2025) are implemented via the introduction of the Ordinance on the Minimum Taxation of Large Corporate Groups (Minimum Taxation Ordinance). Switzerland has provisionally decided not to introduce the international top-up tax in accordance with the Undertaxed Profits Rule (UTPR).
In accordance with the Pillar II rules, TX Group is obliged to pay a top-up tax for the difference between its effective GloBE tax rate for each country and the minimum rate of 15%. Based on the financial information for the 2025 financial year, TX Group has made an assessment of the potential tax risk in relation to Pillar II. According to this assessment, the expected effective GloBE tax rate for the 2025 financial year is above 15% in all countries in which TX Group operates. It is therefore expected that TX Group will not have to pay top-up tax.
Deferred tax assets and liabilities
in CHF mn | 2025 | 2024 |
Property, plant and equipment | 0.0 | 0.0 |
Employee benefit obligations | 2.8 | 3.7 |
Capitalised tax loss carryforwards | 10.4 | 10.5 |
Lease liabilities | 36.0 | 38.7 |
Other balance sheet items | 0.0 | 0.2 |
Total deferred tax assets, gross | 49.2 | 53.0 |
Trade accounts receivable | -0.5 | -0.6 |
Property, plant and equipment | -7.3 | -12.0 |
Right- of-use assets | -38.4 | -37.3 |
Financial assets | -6.6 | -0.1 |
Employee benefit plan assets | -38.2 | -48.7 |
Intangible assets | -61.2 | -68.4 |
Provisions | -0.4 | -3.2 |
Other balance sheet items | -0.5 | -0.6 |
Total deferred tax liabilities, gross | -153.2 | -170.8 |
Total deferred taxes, net | -103.9 | -117.7 |
of which deferred tax assets stated in the balance sheet | 10.9 | 10.6 |
of which deferred tax liabilities stated in the balance sheet | -114.8 | -128.3 |
The change in deferred taxes is shown in the following table:
in CHF mn | 2025 | 2024 |
As of 1 January | -117.7 | -89.4 |
Change in group of consolidated companies | -0.3 | -0.3 |
Deferred tax income | 5.1 | 7.7 |
Taxes on other comprehensive income | 8.9 | -35.6 |
Currency translation differences | 0.0 | -0.0 |
As of 31 December | -103.9 | -117.7 |
Tax loss carryforwards
in CHF mn | 2025 | 2024 |
Capitalised tax loss carryforwards | 10.4 | 10.5 |
Weighted average income tax rate | 17.9% | 16.8% |
Corresponding to effective tax loss carryforwards | -57.8 | -62.4 |
Due after 1 year | - | -0.6 |
Due after 2 to 5 years | -38.0 | -33.2 |
Due after more than 5 years | -19.8 | -28.6 |
As of 31 December 2025, (net) deferred tax assets of CHF 2.7 million (previous year: CHF 2.1 million) had been capitalised for companies that suffered losses in this or the previous year.
in CHF mn | 2025 | 2024 |
Non-capitalised tax loss carryforwards | -77.4 | -85.9 |
Due after 1 year | -5.0 | -3.4 |
Due after 2 to 5 years | -30.3 | -34.7 |
Due after more than 5 years | -42.1 | -47.8 |
Uncertainties with regard to correct treatment of income tax may result in definitive tax assessments only being available several years after the reporting year. Before that assessment by the tax authorities, an income tax assessment must be performed based on the situation as at the end of the reporting period. The uncertainty determined corresponds to either the expected value or the most likely value, depending on which value best reflects the uncertainty.
Current income taxes are recognised in the period to which they relate on the basis of the local net income/(loss) reported by the consolidated companies in the reporting year.
Deferred tax liabilities resulting from measurement differences between tax and consolidated values are calculated and recognised using the liability method. In the process, all temporary differences between the values included in the tax returns and those in the consolidated financial statements are taken into consideration. The tax rates used are the anticipated local tax rates. Depending on the underlying transaction, any change in deferred taxes is either recognised in the income statement in net income/(loss) or directly in other comprehensive income/(loss) as equity.
Deferred tax loss carryforwards and deferred taxes arising from temporary differences are only capitalised if it is likely that gains will be realised in future that would allow the loss carryforwards or the deductible differences to be offset for tax purposes.
The exemption from IAS 12 – Income Taxes is applied to the recognition and disclosure of information on deferred tax assets and liabilities in connection with the Pillar II regulations.