6.1 Income taxes

Income tax expense

In addition, other com­pre­hen­sive income includes current and deferred income taxes, which may be analysed as follows:

Analysis of income taxes

The applicable income tax rate used to prepare the following analysis of income tax expense is the weighted average income tax rate cal­cu­lated on the basis of the Group’s operating sub­sidiaries in Switzer­land. The applicable income tax rate is 17.5% (prior year: 17.8%). The decline in the applicable income tax rate can be attributed to a reduction in the tax rates in various Swiss cantons.

Current income tax assets and liabilities

Deferred income tax assets and liabilities

Tax loss carry-forwards for which no deferred tax assets were recog­nised expire as follows:

Global minimum tax

Swisscom falls under the scope of ap­pli­ca­tion of the OECD minimum tax. The global minimum tax regulations provide for payment of an ad­di­tional tax to account for the difference between the effective GloBE (Global Anti Base Erosion) tax rate per country and the minimum rate of 15%. In Switzer­land and most other countries where Swisscom operates, the laws introducing a global minimum tax entered into force on 1 January 2024. Swisscom has made an assessment regarding the global minimum tax based on applicable tax laws, the effective tax rates per country and in­for­ma­tion on the Group com­pa­nies. Based on the assessment, Swisscom meets the conditions for applying the transitional safe-harbour rules under the minimum tax rules in each country concerned. Swisscom therefore does not expect to pay any ad­di­tional income tax in connection with the global minimum tax. Swisscom is keeping an eye on de­vel­op­ments in the minimum tax regulations and is assessing their impact on Swisscom on an ongoing basis. Swisscom applies the exception to recognising and disclosing in­for­ma­tion about deferred income tax assets and liabilities in connection with income taxes related to minimum tax, as provided in the amendments to IAS 12 published in May 2023.

Other disclosures

No deferred tax liabilities were recog­nised on the undistributed earnings of sub­sidiaries as at 31 December 2024 (prior year: CHF 6 million). Temporary dif­fer­ences of sub­sidiaries and equity-accounted investees for which no deferred tax liabilities are recog­nised as at 31 December 2024 amounted to CHF 3,779 million (prior year: CHF 3,556 million).

Accounting policies

Income taxes encompass all current and deferred taxes which are based on income. Taxes which are not based on income, such as taxes on real estate and on capital, are recorded as other operating expenses. Deferred taxes are computed using the balance sheet liability method, whereby as a general rule deferred taxes are recog­nised on all temporary dif­fer­ences. Temporary dif­fer­ences arise from dif­fer­ences between the carrying amount of a balance sheet position in the con­sol­i­dated financial statements and its value as reported for tax purposes, which will reverse in future periods. Deferred tax assets are only recog­nised as assets to the extent that it is probable that they can be offset against future taxable income. Income tax liabilities on distributions of undistributed profits of Group com­pa­nies are only recog­nised if the distribution of profits is to be made in the foreseeable future. If it is probable that the tax authority will accept the chosen tax treatment, the tax amount in the con­sol­i­dated financial statements is the same as that entered in the tax return submitted. However, if this is not probable, the amounts will be different. The uncertainty is taken into account in the measurement, which re­quires a best-possible estimate of the expected cash outflow. If there are few possible outcomes of the tax treatment, the most likely outcome is used to determine the tax liability. If there are a large number of possible tax con­se­quences, an expected value is determined on the basis of a probability calculation. Current and deferred tax assets and liabilities are offset whenever they relate to the same taxing authority and taxable entity.

Balance sheet

Further disclosures

In­for­ma­tion on the participation rights held by the members of the Board of Directors and the Group Executive Board is disclosed in the Re­mu­ner­a­tion Report (sections 2.5 and 3.5).

As at 31 December 2024, guarantee obligations existed for Group com­pa­nies in favour of third parties totalling CHF 235 million (prior year: CHF 250 million). In addition, financial assets totalling CHF 140 million (prior year: CHF 134 million) were not freely available. These assets serve to secure commitments arising from bank loans.