12. Taxes

12.1 Deferred tax assets and liabilities

The net value of deferred tax liabilities is as follows:

Deferred tax assets and liabilities were generated from the following balance sheet positions:

Utilization of tax loss carry-forwards is fully supported by budget and mid-term projections and is expected to occur within 5–10 years. Tax loss carry-forwards were primarily generated in the USA and the majority have no expiration date.

The tax loss carry-forwards, of which no deferred tax assets are recognized, expire as follows:

The tax loss carry-forwards in 2022, of which no deferred tax assets are recognized, are all related to Lindt & Sprüngli Russia LLC. Tax loss carry-forwards utilized in 2022 amounted to CHF 0.2 million (CHF 0.7 million in prior year).

12.2 Tax expense

The effective tax on the Lindt & Sprüngli Group’s income before taxes differs from the theoretical amount that would arise using the weighted average tax rate across the Group as follows:

The Lindt & Sprüngli Group is currently assessing the impacts of BEPS 2.0 Pillar II, an international tax reform, initiated by the OECD, which foresees a global minimal tax rate of 15%. Currently, Management has not yet sufficient information to quantify the impacts. Generally, due to the reform, a negative impact is expected for countries with a current tax rate below 15%.

The tax for each component of other comprehensive income is: