Tax Cockpit and KPI Definitions Beispiel Global Tax
Tax Cockpit and KPI Definitions Beispiel Global Tax Group (GTG)
Tax Cockpit
Tax Cockpit – 1. Dimension: Profitability
Tax Cockpit – 2. Dimension: Liability
Tax Cockpit – 3. Dimension: Risk optimization/Flexibility
Relevant Tax KPIs were precisely defined and can be calculated by information from Tax Workbook and other pre systems KPIs Definition Profitability § § § § effective tax rate present value of taxes present value quota tax on expenses ordinary tax on ordinary earnings extraordinary tax on extraordinary earnings volume of current taxes = current and deferred tax expenses / earnings before taxes = tax year 1/(1+i) + tax year 2/(1+i)2 + tax year 3/(1+i)3. . . = present value tax / present value EBT = tax expenses / total expenses = ordinary tax expenses / total ordinary earnings = extraordinary tax expenses / total extraordinary earnings = total amount of current taxes Liquidity § § § § volume of DTA volume of DTL tax asset and liability quota tax cash flow quota average duration of deferred tax assets average duration of deferred tax liabilities = total amount of DTA = total amount of DTL = deferred tax assets / (deferred tax liability + tax provisions) = cash flow tax / cash flow operations = (Σ deferred tax assets x remaining time in accounts) / deferred tax assets = (Σ deferred tax liabilities x remaining time in accounts) / deferred tax liabilities Risk optimization/ Flexibility Definition of core KPIs § § § expected value of tax audit losses volatility of ETR average expiration of TLCF volume of TLCF tax provisions for risks = probability of expected tax payments x expected tax payments = standard deviation between exp. loss year 1 and average exp. loss over time = standard dev. between group ETR year 1 and average group ETR over time = Σ (yearly amount of TLCF x remaining time) / total amount of TLCF = tax provisions for risks
Content n Profitability n Liquidity n Risk Optimization and Flexibility
KPI description Effective tax rate Goal: Maximum of profitability KPI: Effective tax rate (ETR) Explanation / Cause-effect-relations: Definition: Current and deferred tax expenses * 100 The globalization of the capital markets requires a generally accepted indicator to assess a company‘s tax position. By using the ETR a comparison of the tax positions of internationally acting companies is possible. The ETR is the core KPI for internal and external communication purposes. Its focus is on current as well as on future tax expenses (i. e. deferred taxes). Net income before tax Addressees: Frequency: - GTG - Mmanagement - External stakeholders x x x Target figure: 27% [%] Usage: - planning - forecast - reporting -… - monthly - quarterly - yearly Data source: Responsibility: Tax. Work. Book Mr. xy, x x x. Level: x x - legal entity - group - country - region - SBU x x
KPI description Present value of taxes Goal: Maximum of profitability KPI: Present value of taxes Explanation / Cause-effect-relations: Der Barwert der potenziellen Steuerzahlungen prognostiziert und bewertet die zukünftigen Steuerzahlungen über den Planungszeitraum der Gesellschaft und lässt somit zeitraumübergreifende Steuerbelastungsvergleiche unterschiedlicher Szenarien zu. Addressees: - GTG - Mmanagement - External stakeholders Data source: TWB Target figure: Definition: Current tax year 1 + Current tax year 2 1+i (1 + i) 2 [Euro] Die Zielgröße hängt vom jeweiligen Planungsfokus ab. Wegen des profitabilitätsmindernden Charakters von Steuern ist generell ein Zielwert von 0 Euro wünschenswert. Usage: - planning - forecast - reporting -… x x Frequency: x x - monthly - quarterly - yearly Responsibility: Mr. xy, Level: x - legal entity - group - country - region - SBU . x. .
KPI description Present value quota Goal: Maximum of profitability KPI: Present value quota Explanation / Cause-effect-relations: Definition: Present value tax *100 Die Barwertquote setzt den Barwert der zukünftigen Steuerzahlungen mit dem Barwert des operativen Ergebnisses in Relation. Sie enthält somit einen dynamischen Deckungsgrad der Steuerzahlung durch das operative Ergebnis des betrachteten Unternehmens und stellt eine dynamisierte, zukünftige Steuerbelastungsquote dar. Addressees: - GTG - Mmanagement - External stakeholders Data source: TWB, Target figure: Present value EBT . . . % [%] Usage: - planning - forecast - reporting -… x x Frequency: x x - monthly - quarterly - yearly Responsibility: Mr. xy, Level: x - legal entity - group - country - region - SBU x
KPI description Ordinary tax on ordinary earnings Goal: Maximum of profitability KPI: Ordinary tax on ordinary earnings Explanation / Cause-effect-relations: Definition: Ordinary tax expenses * 100 Die gewöhnliche Steueraufwandsquote ermittelt die Relation zwischen gewöhnlichem Steueraufwand und gewöhnlichem Ergebnis. Sie eliminiert außerordentliche Effekte und stellt damit ein Maß für die relative steuerliche „Normalbelastung“ des Unternehmens dar. Addressees: - GTG - Mmanagement - External stakeholders Target figure: Total ordinary earnings . . . % [%] Ordinary tax expenses = tax expenses without extraordinary taxes (as capital gains tax) Ordinary earnings = EBT without capital gains etc. Usage: - planning - forecast - reporting -… x x Frequency: x - monthly - quarterly - yearly Data source: Responsibility: TWB Mr. xy, Level: x - legal entity - group - country - region - SBU x
KPI description Extraordinary tax on extraordinary earnings Goal: Maximum of profitability KPI: Extraordinary tax on extraordinary earnings Explanation / Cause-effect-relations: Definition: Extraordinary tax expenses * 100 Die außerordentliche Steueraufwandsquote stellt die Relation von außergewöhnlichem Steueraufwand zu außerordentlichem Ergebnis dar. Sie macht die außerordentliche Steuerbelastung durch einmal auftretende Sondereffekte transparent und setzt sie mit dem zugehörigen Ergebnisanteil in Beziehung. Addressees: - GTG - Mmanagement - External stakeholders Target figure: Total extraordinary earnings . . . % [%] Extraordinary tax expenses = capital gain tax + other extraordinary tax expenses corporate tax + other extraordinary tax expenses local tax Extraordinary earnings = capital gain + tax free revenues - extraordinary expenses Usage: - planning - forecast - reporting -… x x Frequency: x - monthly - quarterly - yearly Data source: Responsibility: TWB Mr. xy, Level: x - legal entity - group - country - region - SBU x
KPI description Volume of current taxes Goal: Maximum of profitability KPI: Volume of current taxes Explanation / Cause-effect-relations: Total amount of current taxes Die Summe der laufenden Steuern ist die originäre Höhe der tatsächlichen durch Steuerbescheid festgesetzten Steuern, die entweder schon gezahlt wurden oder kurzfristig gezahlt werden müssen. Sie enthält keine rein bilanziell entstandenen Steuerlatenzen. Addressees: - GTG - Management - External stakeholders Target figure: Upper interval limit Lower interval limit: Definition: [Euro] Actual tax payments and increase of tax provisions . . . Euro Kann nicht pauschal festgelegt werden, da abhängig vom Planungsobjekt und von Rahmenbedingungen (z. B. PBT) Usage: - planning - forecast - reporting -… x x x Frequency: x x x - monthly - quarterly - yearly Data source: Responsibility: TWB Mr. xy, Level: x x - legal entity - group - country - region - SBU x x
KPI description Tax on expenses Goal: Maximum of profitability KPI: Tax on expenses Explanation / Cause-effect-relations: Definition: Current + deferred tax expenses * 100 Die Steueraufwandsquote ermittelt den Anteil des Steueraufwands am Gesamtaufwand des betrachteten Unternehmens. Sie ermöglicht so einen Aufwandsstrukturvergleich zwischen unterschiedlichen Unternehmen. Addressees: - GTG - Management - External stakeholders Target figure: Total expenses . . . % [%] Usage: - planning - forecast - reporting -… x x Frequency: x - monthly - quarterly - yearly Data source: Responsibility: TWB Mr. xy, Level: x - legal entity - group - country - region - SBU x x
KPI description Volume of current taxes Goal: Maximum of profitability KPI: Volume of deferred taxes Explanation / Cause-effect-relations: Definition: Latente Steuern ergeben sich aus der Differenz von Steuerbilanz und Handelsbilanz. Die Veränderung dieser temporären Differenzen zwischen zwei Perioden fließt als Ertrag oder Aufwand in die Gewinn- und Verlustrechnung. Addressees: - GTG - Mmanagement - External stakeholders Volume of deferred differences movement * tax rate Target figure: . . . Euro [Euro] Volume of deferred taxes = movement of DTL – movement of DTA Usage: - planning - forecast - reporting -… x x x Frequency: x x x - monthly - quarterly - yearly Data source: Responsibility: TWB Mr. xy, Level: x x - legal entity - group - country - region - SBU x x
KPI description Non-tax-deductible expenses (NTDE) Goal: Maximum of profitability KPI: Non-tax-deductible expenses (NTDE) Explanation / Cause-effect-relations: Definition: A tax deduction or a tax-deductible expense represents an expense incurred by a taxpayer that is subtracted from gross income and results in a lower overall taxable income, no tax exemption. Total amount of expenses, which are not tax deductible Target figure: Upper interval limit Lower interval limit: Kann nicht pauschal festgelegt werden, da abhängig von gesetzlichen Rahmenbedingungen [Euro] Usage: - planning - forecast - reporting -… Addressees: - GTG - Management - External stakeholders . . . Euro x x x Frequency: x x - monthly - quarterly - yearly Data source: Responsibility: TWB, statutory requirements Mr. xy, GTG Level: x x - legal entity - group - country - region - SBU x x x
KPI description Tax exempt income Goal: Maximum of profitability KPI: Tax exempt income Explanation / Cause-effect-relations: Definition: Many types of income and benefits may be exempt from income taxes to some limited extent, because of how they were received, such as educational scholarships, gifts, inheritances, combat pay to military personnel, income from local bonds, employee discounts, payments for personal injuries, and life insurance proceeds. Addressees: - GTG - Management - External stakeholders Total amount of income, for which no taxes have to be paid Target figure: Upper interval limit Lower interval limit: . . . Euro Kann nicht pauschal festgelegt werden, da abhängig von gesetzlichen Rahmenbedingungen [Euro] Usage: - planning - forecast - reporting -… x x x Frequency: x x - monthly - quarterly - yearly Data source: Responsibility: TWB, statutory requirements Mr. xy, GTG Level: x - legal entity - group - country - region - SBU x x
KPI description Withholding taxes (WHT) Goal: Maximum of profitability KPI: Volume of withholding taxes (WHT) Explanation / Cause-effect-relations: WHT is an amount withheld by the party making payment to another (payee) and paid to the taxation authorities. The payee is assessed on the gross amount, and the tax to be withheld is computed in that assessment. The purpose of WHT is to facilitate or accelerate collection, by collecting tax from payers rather than a much greater number of payees, and by collecting tax from payers within the jurisdiction rather than payees who may be outside the jurisdiction. Definition: Addressees: Frequency: - GTG - Management - External stakeholders x Total amount of withholding taxes Target figure: Upper interval limit Lower interval limit: . . . Euro [Euro] Usage: - planning - forecast - reporting -… - monthly - quarterly - yearly Data source: Responsibility: TWB Mr. xy, GTG x x Level: x - legal entity - group - country - region - SBU x x
KPI description Tax credits Goal: Maximum of profitability KPI: Tax credits Explanation / Cause-effect-relations: Within the Australian, Canadian, UK, French, and US tax systems, a tax credit is a recognition of partial payment already made towards tax due. This situation arises e. g. , when standard rate tax has been deducted at source (WTH), but the tax-payer is subject to further taxation at a higher rate. It also applies in dividend imputation systems. In some countries (e. g. UK), "tax credit" refers to tax treated as deducted at source, which has not actually been deducted or paid. Definition: Addressees: Frequency: - GTG - Mmanagement - External stakeholders x Target figure: Upper interval limit Lower interval limit: Total amount of tax credits [Euro] . . . Euro Usage: - planning - forecast - reporting -… - monthly - quarterly - yearly Data source: Responsibility: TWB, statutory requirements Mr. xy, GTG x x Level: x - legal entity - group - country - region - SBU x x
Content n Profitability n Liquidity n Risk Optimization and Flexibility
KPI description Volume of deferred tax assets Goal: Satisfactory level of liquidity KPI: Volume of deferred tax assets (DTA) Explanation / Cause-effect-relations: Definition: Die Höhe der aktiven latenten Steuern bildet sich aus der Differenz zwischen handelsrechtlichen und steuerrechtlichen Wertansätzen von Bilanzaktiva oder Bilanzpassiva, die zu potenziellen Steuerrückerstattungen in Zukunft führen. Sie stellen somit potenzielle Ansprüche gegenüber dem Fiskus dar. Addressees: - GTG - Management - External stakeholders Total amount of DTA [Euro] ∑ (IFRS-value – tax book value per asset) * tax rate, if amount < 0 + ∑ (IFRS-value – tax book value per liability) * tax rate, if amount > 0 Target figure: . . . Euro Upper interval limit . . . Euro Lower interval limit: . . . Euro Usage: - planning - forecast - reporting -… x x x Frequency: x x x - monthly - quarterly - yearly Data source: Responsibility: TWB Mr. xy, GTG Level: x x - legal entity - group - country - region - SBU x x
KPI description Volume of deferred tax liabilities Goal: Satisfactory level of liquidity KPI: Volume of deferred tax liabilities (DTL) Explanation / Cause-effect-relations: Definition: Total amount of DTL Passive latente Steuern resultieren aus Wertdifferenzen zwischen handels- und steuerrechtlichen Wertansätzen von Bilanzaktiva oder Bilanzpassiva, die zu potenziellen Steuernachzahlungen führen. Sie stellen somit eine zukünftige Steuerlast gegenüber dem Fiskus dar. Addressees: - GTG - Management - External stakeholders [Euro] ∑(IFRS-Value – tax book value per asset) * tax rate, if amount > 0 + ∑ (IFRS-value – tax book value per liability) * tax rate, if amount < 0 Target figure: . . . Euro Upper interval limit . . . Euro Lower interval limit: . . . Euro Usage: - planning - forecast - reporting -… x x x Frequency: x x x - monthly - quarterly - yearly Data source: Responsibility: TWB Mr. xy, GTG Level: x x - legal entity - group - country - region - SBU x x
KPI description Tax asset and tax liability quota Goal: Satisfactory level of liquidity KPI: Tax asset and tax liability quota Explanation / Cause-effect-relations: Definition: Deferred tax assets * 100 Das Verhältnis zwischen aktiven und passiven latenten Steuern zeigt die bilanzielle Liquiditätswirkung / das bilanzielle Finanzierungs- bzw. Kapitalbindungspotenzial, das aus den latenten Steuern herrührt. Ist die Quote größer als eins zeigt sie gleichzeitig Abschreibungsbedarf der aktiven latenten Steuern an. Addressees: - GTG - Management - External stakeholders Deferred tax liabilities + tax provisions Target figure: >100 % [%] Usage: - planning - forecast - reporting -. . . x x Frequency: x - monthly - quarterly - yearly Data source: Responsibility: TWB Mr. xy, GTG Level: x - legal entity - group - country - region - SBU x
KPI description Deferred tax asset valuation allowances Goal: Satisfactory level of liquidity KPI: Deferred tax asset valuation allowances Explanation / Cause-effect-relations: Companies accrue for the tax benefit expected to be received in future years if, in the judgment of management, it is "more likely than not" that the company will receive the tax benefits. If after conducting the periodic review, management determines that the realization of the tax asset does not meet the "more-likely-than-not" criteria, an offsetting valuation allowance is recorded thereby reducing net earnings and the deferred tax asset in that period. Definition: Addressees: Frequency: - GTG - Management - External stakeholders x Total movement of DTA due to DTA valuation allowances [Euro] Target figure: . . . Euro Upper interval limit . . . Euro Lower interval limit: . . . Euro Usage: - planning - forecast - reporting -. . . - monthly - quarterly - yearly Data source: Responsibility: TWB Mr. xy, GTG x x Level: x - legal entity - group - country - region - SBU x x
KPI description Volume of deferred tax liabilities quasi equity Goal: Satisfactory level of liquidity KPI: Volume of deferred tax liabilities quasi equity Explanation / Cause-effect-relations: Definition: DTLs can be permanent, and instead of reflecting a future tax payment, the DTL might be more similar to equity. Because many companies are growing and continually adding PP&E, the difference in depreciation methods never reverses, and the DTLs related to depreciation are more like equity than liabilities. Addressees: - GTG - Management - External stakeholders Total amount of DTL, which are more like equity than liabilities [Euro] Target figure: . . . Euro Upper interval limit . . . Euro Lower interval limit: . . . Euro Usage: - planning - forecast - reporting -. . . x x Frequency: x - monthly - quarterly - yearly Data source: Responsibility: TWB Mr. xy, GTG Level: x - legal entity - group - country - region - SBU x x
KPI description Tax cash flow Goal: Satisfactory level of liquidity KPI: Tax cash flow Explanation / Cause-effect-relations: Definition: Cash flow tax Der Steuer-Cash-flow zeigt den tatsächlichen Liquiditätsabfluss durch Steuern im betrachteten Jahr an und dient somit der Liquiditätsplanung. Er gibt an, in welcher Höhe Finanzmittel durch Steuerzahlungen aus dem Zahlungsmittelbestand des Unternehmens insgesamt abgeflossen sind. Addressees: - GTG - Management - External stakeholders Target figure: . . . Euro [Euro] Cash flow tax = current taxes + payments from prior periods – increase of unpaid tax provisions for next period Usage: - planning - forecast - reporting -. . . x x x Frequency: x x x - monthly - quarterly - yearly Data source: Responsibility: TWB Mr. xy, GTG Level: x x - legal entity - group - country - region - SBU x x
KPI description Tax cash flow quota Goal: Satisfactory level of liquidity KPI: Tax cash flow quota Explanation / Cause-effect-relations: Definition: Cash flow tax Die Relation zwischen Steuer-Cash-Flow und dem operativen Cash-Flow zeigt an, welcher Anteil des operativen Cash. Flows durch Steuerzahlungen verbraucht wird. Sie ist damit ein Indikator für die verbleibende Liquidität der betrachteten Gesellschaft. Addressees: - GTG - Management - External stakeholders Target figure: Cash flow operations . . . % [%] Usage: - planning - forecast - reporting -. . . x x Frequency: x - monthly - quarterly - yearly Data source: Responsibility: TWB, SQL Mr. xy, GTG Level: x - legal entity - group - country - region - SBU x x
KPI description Cash Tax Rate Goal: Maximum of profitability KPI: Cash Tax Rate ( Total Tax Contribution) Explanation / Cause-effect-relations: Definition: A company's overall tax contribution is a measure of the cost of all taxes borne by the company, including labour taxes or contributions borne by the employer, as well as corporate income tax. The Cash Tax Rate adds up all taxes and mandatory contributions borne by the company and expresses the total as a percentage of profits. Addressees: - GTG - Management - External stakeholders (Volume of current tax paid + Volume of other Taxes) / NIBT Target figure: . . . % [%] Usage: - planning - forecast - reporting -… x x Frequency: x x x - monthly - quarterly - yearly Data source: Responsibility: TWB Mr. xy, GTG Level: x - legal entity - group - country - region - SBU x
KPI description Average duration of deferred tax assets Goal: Satisfactory level of liquidity KPI: Average duration of deferred tax assets (DTA) Explanation / Cause-effect-relations: Definition: Σ (DTA x remaining time in accounts) Die durchschnittliche Bindungsdauer der aktiven latenten Steuern zeigt die durchschnittliche verbleibende Verweildauer dieser Aktiva an. Je höher die Dauer ist, um so länger müssen bilanzielle Passiva (im Regelfall passive latente Steuern) zur Finanzierung dieser Aktiva bereitgestellt werden. Addressees: - GTG - Management - External stakeholders Target figure: DTA . . . years [years] To be splitted into „affecting“ and „non-affecting“ in the reporting. Usage: - planning - forecast - reporting -. . . x x Frequency: x - monthly - quarterly - yearly Data source: Responsibility: TWB Mr. xy, GTG Level: x - legal entity - group - country - region - SBU x x
KPI description Average duration of deferred tax liabilities Goal: Satisfactory level of liquidity KPI: Average duration of deferred tax liabilities (DTL) Explanation / Cause-effect-relations: Definition: Σ (DTL x remaining time in accounts) Die durchschnittliche Bindungsdauer der passiven latenten Steuern zeigt die zeitliche Bindung dieser Passiva an, und damit die zeitgleiche zinslose bilanzielle Finanzierung entsprechender Aktiva. Primär sind hierfür zunächst die aktiven latenten Steuern zu verwenden. Addressees: - GTG - Management - External stakeholders Target figure: DTL . . . years [years] To be splitted into „affecting“ und „non-affecting“ in the reporting. Usage: - planning - forecast - reporting -. . . x x Frequency: x - monthly - quarterly - yearly Data source: Responsibility: TWB Mr. xy, GTG Level: x - legal entity - group - country - region - SBU x x
Content n Profitability n Liquidity n Risk Optimization and Flexibility
KPI description Expected value of tax audit losses/findings Goal: Satisfactory level of risk optimization and flexibility KPI: Expected value of tax audit losses/findings Explanation / Cause-effect-relations: Definition: Der Erwartungswert gibt den wahrscheinlichen Umfang der Steuernachzahlungen aufgrund von Betriebsprüfungen an. Er setzt sich zusammen aus der vom Steuerexperten geschätzten Wahrscheinlichkeit der Inanspruchnahme multipliziert mit der potenziellen Höhe dieser betriebsprüfungsbedingten Nachzahlungen. Addressees: - GTG - Management - External stakeholders Probability of expected tax payments x expected tax payments Target figure: . . . Euro [Euro] Usage: - planning - forecast - reporting -. . . x x x Frequency: x - monthly - quarterly - yearly Data source: Responsibility: offen Mr. xy, GTG Level: x x - legal entity - group - country - region - SBU x x
KPI description Volatility of tax audit losses Goal: Satisfactory level of risk optimization and flexibility KPI: Volatility of tax audit losses Explanation / Cause-effect-relations: Definition: Die Schwankungsbreite der Betriebsprüfungsverluste ist ein Risikomaß zur Messung der potenziellen steuerlichen Nachzahlungen einer Betriebsprüfung. Im Zeitverlauf ist sie ein Indikator der Entwicklung der steuerlich eingegangenen Risiken / Anerkennungstrends des Unternehmens bei Betriebs-prüfungen. Addressees: - GTG - Management - External stakeholders Standard deviation between expected loss year 1 and average expected loss over time Target figure: . . . % [%] = √ ∑ ( exp. l. year x – average exp. l. ) Usage: - planning - forecast - reporting -. . . x x Frequency: x - monthly - quarterly - yearly Data source: Responsibility: . . . Mr. xy, GTG Level: x - legal entity - group - country - region - SBU x
KPI description Volatility of ETR Goal: Satisfactory level of risk optimization and flexibility KPI: Volatility of ETR Explanation / Cause-effect-relations: Definition: Die Abweichung der ETR von ihrem Durchschnitt im Zeitablauf zeigt die Schwankungsbandbreite der ETR an und ist ein Gesamtindikator der Trendentwicklung für die Steuerpolitik und die Abweichung vom langfristigen Durchschnitt des Gesamtkonzerns. Addressees: - GTG - Management - External stakeholders Standard deviation between group ETR year 1 and average group ETR over time Target figure: . . . % [%] = √ ∑ (ETR year x – average ETR) Usage: - planning - forecast - reporting -. . . x x Frequency: x - monthly - quarterly - yearly Data source: Responsibility: TWB Mr. xy, GTG Level: x x - legal entity - group - country - region - SBU x x
KPI description Volume of TLCF Goal: Satisfactory level of risk optimization and flexibility KPI: Volume of TLCF (Tax loss carried forward) Explanation / Cause-effect-relations: Definition: Die Summe der Verlustvorträge zeigt die historisch entstandenen, noch nicht verwendeten Verluste an. In gleicher Höhe können zukünftig Gewinne verrechnet werden, ohne dass eine Besteuerung eintritt. Das ermöglicht somit steuerliche Flexibilität in der Allokation von Gewinnen auf einzelne Gesellschaften und beeinflusst die Höhe der laufenden Steuerzahlung. Addressees: - GTG - Management - External stakeholders Total amount of TLCF (sum of ordinary, state tax and capital losses) Target figure: . . . Euro [Euro] = ∑ TLCF per expiration year Usage: - planning - forecast - reporting -. . . x x x Frequency: x x - monthly - quarterly - yearly Data source: Responsibility: TWB Mr. xy, GTG Level: x x - legal entity - group - country - region - SBU x x
KPI description Average expiration of TLCF Goal: Satisfactory level of risk optimization and flexibility KPI: Average expiration of TLCF Explanation / Cause-effect-relations: Die durchschnittliche Restlaufzeit von Verlustvorträgen zeigt die durchschnittliche zeitliche Dauer an, in der Verlustvorträge als zukünftiges Gewinnverrechnungspotenzial noch zur Verfügung stehen. Je kürzer die durchschnittliche Restgültigkeitsdauer der Verlustvorträge, um so dringlicher die Zuweisung von Gewinnen, da nach Ablauf keine steuerreduzierenden Effekte mehr wirken. Definition: Addressees: Frequency: - GTG - Management - External stakeholders x Σ (yearly amount of TLCF x remaining Target figure: time) . . . years total amount of TLCF [years] Usage: - planning - forecast - reporting -. . . - monthly - quarterly - yearly Data source: Responsibility: TWB Mr. xy, GTG x x Level: x x - legal entity - group - country - region - SBU x x
KPI description Current expiration of TLCF Goal: Satisfactory level of risk optimization and flexibility KPI: Current expiration of TLCF Explanation / Cause-effect-relations: Definition: remaining time of TLCF Die tatsächliche Restlaufzeit von Verlustvorträgen zeigt die zeitliche Dauer an, in der Verlustvorträge als zukünftiges Gewinnverrechnungspoten-zial noch zur Verfügung stehen. Je kürzer die Restgültigkeitsdauer der Verlustvorträge, um so dringlicher die Zuweisung von Gewinnen, da nach Ablauf keine steuerreduzierenden Effekte mehr wirken. Addressees: - GTG - Management - External stakeholders Target figure: . . . years [years] Usage: - planning - forecast - reporting -. . . x x Frequency: x - monthly - quarterly - yearly Data source: Responsibility: TWB Mr. xy, GTG Level: x x - legal entity - group - country - region - SBU x x
KPI description Tax provisions for risks Goal: Satisfactory level of risk optimization and flexibility KPI: Tax provisions for risks Explanation / Cause-effect-relations: Definition: Total amount of tax provisions for risks Target figure: . . . Euro [Euro] Upper interval limit . . . Euro Lower interval limit: . . . Euro Die Rückstellungen für steuerliche Risiken sind bewertete potenzielle steuerliche Nachzahlungsrisiken des Unternehmens, die jedoch nicht den Charakter einer sicheren Verbindlichkeit haben. Sie stellen somit das vollständige monetäre, aktuell bereits ersichtliche und bilanzierungswürdige Ausmaß des Steuerrisikos dar. as per IFRS-accounts Addressees: Frequency: - GTG - Management - External stakeholders x x Usage: - planning - forecast - reporting -. . . - monthly - quarterly - yearly Data source: Responsibility: TWB Mr. xy, GTG x x x Level: x x - legal entity - group - country - region - SBU x x
BACKUP
Effective tax rate (ETR) Goal: Maximum of profitability KPI: Effective tax rate (ETR) Explanation / Cause-effect-relations: Der Unterschied zur „klassischen“ Steuerplanung liegt in der Berechnungsweise der ETR. Dem Gewinn vor Steuern einer Periode wird die Summe aus aktuellem und latentem Steueraufwand gegenübergestellt. Die Dimension der Kennzahl ist damit „%“. Zukünftige Steuerzahlungen und Steuererstattungen gehen über den latenten Steueraufwand bzw. –ertrag in die Kennzahl ein, wobei der Zeitpunkt der Realisation des Steueraufwandes / -ertrages jedoch unerheblich ist. Steuerlatenzen ergeben sich durch Differenzen im Bilanzansatz eines Vermögensgegenstandes oder einer Schuld zwischen Handels- und Steuerbilanz. Diese Differenzen können sowohl dem Grunde als auch der Höhe nach bestehen. Im Unterschied zur „klassischen“ Steuerplanung werden bei der Berechnung der ETR nur Sachverhalte betrachtet, die in der Berichtsperiode oder in vorangegangenen Perioden wirtschaftlich verursacht wurden. Planzahlen sind in der Regel zur Berechnung der Kennzahl nicht erforderlich. Eine Ausnahme hiervon bildet der Ansatz oder die Veränderung von aktiven latenten Steuern auf Verlustvorträge, die nur dann gebildet werden dürfen, wenn eine zukünftige Nutzung zumindest wahrscheinlich (Prognose: „more likely than not“) ist.
KPI description Present value quota Goal: Maximum of profitability KPI: Present value quota Explanation / Cause-effect-relations: Durch gezielte Sachverhaltsgestaltung sowie durch die Nutzung von Wahlrechten und Spielräumen werden Aufwendungen zeitlich vorgezogen, Erträge in spätere Perioden verlagert und Verlustvorträge möglichst frühzeitig genutzt. Der in der Steuerrechnung auszuweisende Gewinn, welcher die Bemessungsgrundlage der Besteuerung darstellt, wird möglichst weit in die Zukunft verlagert. Hierdurch steigt der Kapitalwert einer Investition, da die zu leistenden Steuerzahlungen in stärkerem Maße der Abzinsung unterliegen. Im Nenner der „Present Value Quota“ steht der über den Planungszeitraum erwartete Profit Before Tax, der nach den Maßgaben der IFRS ermittelt und ebenfalls auf den Planungszeitpunkt abgezinst wurde. Auf diese Weise ergibt sich eine Kennzahl mit einem Wertebereich zwischen (in der Regel) 0 und 1, die im Gegensatz zur ETR den Zeitpunkt der Steuerzahlung und damit den Abfluss liquider Mittel berücksichtigt. Die Ermittlung der Kennzahl zu Planungszwecken ist an die Verfügbarkeit von Prognosen über Ergebnis- und Zahlungsgrößen gebunden. Der Planungsgegenstand ist dabei flexibel zu definieren und kann einzelnes Projekt, eine Legaleinheit, einen Geschäftsbereich, regionale / überregionale Aggregate oder den gesamten Konzern umfassen.
KPI description Ordinary tay on ordinary earnings / Extraordinary tax on extraordinary earnings Goal: Maximum of profitability KPI: Ordinary tax on ordinary earnings / Extraordinary tax on extraordinary earnings Explanation / Cause-effect-relations: Die Aufteilung des gesamten Steueraufwandes in solchen aus laufendem Einkommen und solchem aus außerordentlichem Einkommen ermöglicht eine getrennte Analyse beider Komponenten. Auf diese Weise können steuerlastmindernde und steuerlasterhöhende Effekte, die aus steuerlichen Sonderregelungen für außerordentliche Geschäftsvorfälle herrühren, isoliert betrachtet werden. Dies soll Planungsaktivitäten unterstützen, die nicht das operative Geschäft betreffen w. z. B. Sitzverlagerungen, Akquisitionen, Divestments. Gleichzeitig ist die Steuerquote, mit der das laufende Einkommen belastet wird, frei von Sondereffekten zu erkennen. Planungsobjekte, die hierauf Auswirkungen haben könnten beispielsweise Leasing- oder Finanzierungsmodelle sein. Die Zuordnung der Ordinary / Extraordinary Taxes zu den jeweiligen Einkünften ist schwierig. Im Prinzip müsste geschäftsvorfallbezogen vorgegangen werden und es müssten die jeweils anzuwendenden „Sonderregelungen“ der Jurisdiktion, in der die außerordentlichen Einkünfte erwirtschaftet werden, bekannt sein. Hilfsweise kann auf die Angaben im TWB zurückgegriffen werden. Dies ist zu Planungszwecken aber nur eingeschränkt zielführend.
KPI description Volume of DTA/DTL / Tax asset and tax liablility quota Goal: Satisfactory level of liquidity KPI: Volume of DTA and DTL / Tax asset and tax liability quota Explanation / Cause-effect-relations: Die absolute Höhe der DTA / DTL ist zunächst ein Hinweis auf den Grad der Abweichung zwischen der Steuerrechnung in der (den) jeweiligen Jurisdiktion(en) und der Bilanzierung nach IAS/IFRS (qualifizierter würde die Aussage, wenn die DTA / DTL ins Verhältnis zur Bilanzsumme gesetzt würden!). Die absolute Höhe der DTA kann darüber hinaus als Risikotreiber angesehen werden, da durch die Änderungen der Werthaltigkeit der Position steuerlicher Aufwand in Form einer Valuation Allowance entstehen kann. Inwieweit ein solches Impairment der DTA Position erfolgswirksam wird, hängt davon ab, ob jene erfolgswirksam oder erfolgsneutral gebildet wurde. Um über die zukünftigen Erfolgswirkungen der Positionen DTA und DTL Klarheit zu gewinnen, sollen die entsprechenden KPIs nach diesem Kriterium unterteilt werden. Werden die Positionen DTA und DTL ins Verhältnis gesetzt, so kann die sich ergebende Quote als Indikator für die Nutzbarkeit der DTA interpretiert werden. Das Verhältnis zwischen aktiven und passiven latenten Steuern zeigt die bilanzielle Liquiditätswirkung / das bilanzielle Finanzierungs- bzw. Kapital-bindungspotenzial, das aus den latenten Steuern herrührt. Ist die Quote größer als eins zeigt sie gleichzeitig Abschreibungsbedarf der aktiven latenten Steuern an.
The illustration of the cause-effect-relations of KPIs enables the future users to overview a tax management approach Cause-effect-relations of KPIs Effective tax rate Tax on expenses Volume of Current tax WTH Volatility of ETR Profitabilität Present value of taxes Volume of deferred tax Extra/Ordinary tax on extra/ordinary earnings Present value quota Expected reversal amount of DTA / DTL Tax Value added Liquidität Tax cash flow Volume of Current tax paid Tax cash flow quota Tax Credits Tax on DD movem Average expiration of TLCF Volume of current tax risks Volume of TLCF Current expiration of TLCF Volume of DTA Tax provisions for risks Volatility of ETR DTA Valuation allowances DTA against equity Volume of other Taxes Volume of DTL Expected value of tax audit findings Volatility of tax audit losses Others Tax exempt income Average duration of DTA / DTL Cash Tax Rate Risk Volume of deferred diff movement NTDE DTL from PPA Volume of DTL quasi equity DTL against equity
Most of the necessary data to calculate the KPIs stem from the Tax Workbook Drivers of KPIs - overview 1 4 Current Tax Losses (volume / expiration) Total Tax Rate 2 7 5 Corporation Tax 3 8 Local / State Tax 6 Deferred Assets / Deferred Liabilities Current Tax Accruals Data from TOPAS 9 Tax Credits Data from other sources
Driver tree per TWB category Total tax rate Corporation tax incl. surcharge tax Reduced corporate tax Total Tax Rate Increased corporate tax Tax rates for capital gains / capital losses Local tax rate Driver trees do only illustrate the cause-effectrelations; calculation in accordance with TWB.
Driver tree per TWB category Corporation tax Net income before taxes on income (as per IAS Accounts) Elimination of profits and losses due to a profit and loss absorption agreement Elimination of partnership income received Capital gain tax Non-deductible expenses Tax-exempt income Income taxes separately Corporation Tax Surcharge taxes Capital gains / capital losses in current year Permanent differences from (sub-) consolidation level Deductible other income taxes / Gew. St Deductible income taxes / WHT Tax creditable Tax credits deductible Tax base transfer received from partnerships Tax base tansfer received from corporation due to fiscal unity Other modifications Tax base transferred as partnerships Tax base tansfer transferred as corporation due to fiscal unity Utilization of loss carryforwards Corporation tax increase / reduction
Driver tree per TWB category Deferred assets / deferred liabilities (volume / average remaining time) Sundry intangible assets DTA - except tax credits Accounts payable to affiliated comp. Assets similar to goodwill Other deferred charges Accounts payable to associated comp. Goodwill Equity (except NIBT on income) Accounts payable to other investments Tangible assets NIBT on income Tax liabilities - income tax Financial assets Inventories Deferred assets / deferred liabilities Accounts receivable trade and services incl. notes Accounts receivable from affiliated companies Accounts receivable from associated companies Accounts receivable from other investments Shares in consolidated group companies held by third parties Provisions for pensions and similar obligations Provisions for other post-employment benefits Deferred tax provisions - except tax cushions Tax liabilities - others Derivatives, liabilities Other liabilities Deferred income Deferred tax provisions - tax cushions Assets similar to goodwill - depriciation Deferred tax provisions - taxes on attributable income Sundry intangible assets- depriciation Derivatives, assets Tax provisions - taxes on income Tangible assets - depriciation Other assets - except any taxes Tax provisions - other taxes Financial assets - depriciation Other assets - taxes on income Sundry provisions Inventories - depriciation Other assets - other taxes Financial liabilities Others - depriciation Cash / marketable securities Loans payable to social insurances Other taxfree reserves Debt discount Accounts payable trade & services SOPO § 6 b ESt. G (Germany)
Driver tree per KPI Effectice tax rate Effective tax rate Total tax rate detailed driver tree, see page 46 Corporation tax detailed driver tree, see page 47 Deferred assets (volume) / deferred liabilities (volume) detailed driver tree, see page 48 Current tax losses detailed driver tree, see page 52 Local / state tax detailed driver tree, see page 54 Tax credits detailed driver tree, see page 55 EBT
Driver tree per KPI Present value of taxes Total tax rate detailed driver tree, see page 46 Corporation tax detailed driver tree, see page 47 Current tax losses detailed driver tree, see page 52 Local / state tax detailed driver tree, see page 54 Tax credits detailed driver tree, see page 55 Present value of taxes Interest
Driver tree per KPI Present value quota Total tax rate detailed driver tree, see page 46 Corporation tax detailed driver tree, see page 47 Current tax losses detailed driver tree, see page 52 Local / state tax detailed driver tree, see page 54 Tax credits detailed driver tree, see page 55 Interest EBT
Driver tree per TWB category Current tax losses (volume) PROPOSAL Volume of tax credits (unutilized) - corporate tax - Current tax losses (volume) Volume of tax credits (unutilized) - local/state tax / Gew. St - Volume of tax credits (unutilized) - capital losses -
Driver tree per TWB category Current tax losses (expiration) Expiring in 2006 Expiring in 2007 Expiration of tax credits - corporate tax - Expiring in 2008 Expiring in 2009 Expiring in later than 2009 No Expiration Expiring in 2006 Expiring in 2007 Current tax losses (expiration) Expiration of tax credits - local/state tax / Gew. St - Expiring in 2008 Expiring in 2009 Expiring in later than 2009 No Expiration Expiring in 2006 Expiring in 2007 Expiration of tax credits - capital losses - Expiring in 2008 Expiring in 2009 Expiring in later than 2009 No Expiration
Driver tree per TWB category Local / state tax Add-ons state tax Subtractions state tax Corrections prior year Local / State Tax base transfer received from corporations due to fiscal unity Tax base transfer received from partnerships Tax base transferred from corporations due to fiscal unity Tax base transferred from partnerships
Driver tree per TWB category Tax credits (volume) Volume of tax credits (unutilized) - foreign tax credits - Tax credits (volume) Volume of tax credits (unutilized) - R&D tax credits - Volume of tax credits (unutilized) - other -
Driver tree per TWB category Tax credits (expiration) Expiring in 2006 Expiring in 2007 Expiration of tax credits - foreign tax credits - Expiring in 2008 Expiring in 2009 Expiring in later than 2009 No Expiration Expiring in 2006 Expiring in 2007 Tax credits (expiration) Expiration of tax credits - R&D tax credits - Expiring in 2008 Expiring in 2009 Expiring in later than 2009 No Expiration Expiring in 2006 Expiring in 2007 Expiration of tax credits - other - Expiring in 2008 Expiring in 2009 Expiring in later than 2009 No Expiration
Driver tree per KPI Tax on expenses Total tax rate detailed driver tree, see page 46 Corporation tax detailed driver tree, see page 47 Deferred assets (volume) / deferred liabilities (volume) detailed driver tree, see page 48 Current tax losses detailed driver tree, see page 52 Local / state tax detailed driver tree, see page 54 Tax credits detailed driver tree, see page 55 Expenses
Driver tree per KPI Ordinary tax on ordinary earnings Total tax rate detailed driver tree, see page 46 Corporation tax detailed driver tree, see page 47 Deferred assets (volume) / deferred liabilities (volume) detailed driver tree, see page 48 Current tax losses detailed driver tree, see page 52 Local / state tax detailed driver tree, see page 54 Tax credits detailed driver tree, see page 55 Ordinary earnings
Driver tree per KPI Extraordinary tax on extraordinary earnings Total tax rate detailed driver tree, see page 46 Corporation tax detailed driver tree, see page 47 Current tax losses detailed driver tree, see page 52 Local / state tax detailed driver tree, see page 54 Tax credits detailed driver tree, see page 55 Extraordinary tax on extraordinary earnings Extraordinary earnings
Driver tree per KPI Volume of current taxes Total tax rate detailed driver tree, see page 46 Corporation tax detailed driver tree, see page 47 Current tax losses detailed driver tree, see page 52 Local / state tax detailed driver tree, see page 54 Tax credits detailed driver tree, see page 55
Driver tree per KPI Volume of deferred tax assets Total tax rate detailed driver tree, see page 46 Corporation tax detailed driver tree, see page 47 Deferred assets (volume) detailed driver tree, see page 48
Driver tree per KPI Volume of deferred tax liabilities Total tax rate detailed driver tree, see page 46 Corporation tax detailed driver tree, see page 47 Deferred liabilities (volume) detailed driver tree, see page 48
Driver tree per KPI Tax asset and liability quota Total tax rate detailed driver tree, see page 46 Corporation tax detailed driver tree, see page 47 Deferred assets (volume) / deferred liabilities (volume) detailed driver tree, see page 48
Driver tree per KPI Tax cash flow Total tax rate detailed driver tree, see page 46 Corporation tax detailed driver tree, see page 47 Local / state tax detailed driver tree, see page 54 Tax credits detailed driver tree, see page 55 Tax cash flow
Driver tree per KPI Tax cash flow quota Total tax rate detailed driver tree, see page 46 Corporation tax detailed driver tree, see page 47 Local / state tax detailed driver tree, see page 54 Tax credits detailed driver tree, see page 55 Total cash flow operations
Driver tree per KPI Average duration of DTA / DTL Deferred assets (volume) detailed driver tree, see page 48 Deferred assets (average remaining time) detailed driver tree, see page 48 Deferred liabilities (volume) detailed driver tree, see page 48 Deferred liabilities (average remaining time) detailed driver tree, see page 48 Average duration of DTA Average duration of DTL
Driver tree per KPI Expected value of tax audit losses / volatility of tax audit losses Expected value of tax audit losses Volatility of tax audit losses Expected tax payments for audit reason Probability of expected tax payments for audit reason
Driver tree per KPI Volatility of ETR Total tax rate detailed driver tree, see page 46 Corporation tax detailed driver tree, see page 47 Deferred assets (volume) / deferred liabilities (volume) detailed driver tree, see page 48 Current tax losses detailed driver tree, see page 52 Local / state tax detailed driver tree, see page 54 Tax credits detailed driver tree, see page 55 EBT
Driver tree per KPI Average expiration of TLCF / Volume of TLCF Average expiration of TLCF Current tax losses (volume and expiration) detailed driver tree, see pages 52, 53 Tax credits (volume and expiration) detailed driver tree, see pages 55, 56 Current tax losses (volume and expiration) detailed driver tree, see pages 52, 53 Tax credits (volume and expiration) detailed driver tree, see pages 55 , 56 Volume of TLCF
Driver tree per KPI Tax provision for risks Corporation tax Tax-exempt income Income taxes separately Capital gains / capital losses in current year Capital gain tax Permanent differences from (sub-) consolidation level Deductible other income taxes / Gew. St Deductible income taxes / WHT Surcharge taxes Tax provision for risks Tax credits deductible Tax base transfer received from partnerships Tax base tansfer received from corporation due to fiscal unity Tax creditable Tax base transferred as partnerships Tax base tansfer transferred as corporation due to fiscal unity Utilization of loss carryforwards Other modifications Current Tax Accruals Corporation tax increase / reduction
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