Income tax
2024 |
2023 |
|
Current tax credit |
- |
- |
Deferred tax expense |
(42,499) |
(49,289) |
Total income tax |
(42,499) |
(49,289) |
Reconciliation of effective tax rate |
||
Profit before tax |
321,104 |
378,560 |
Taxed at 12.5% (2023: 12.5%) |
(40,138) |
(47,320) |
Depreciation on capital expenditure that is not deductible for tax purposes |
(1,727) |
(1,406) |
Other expenses not deductible for tax purposes |
(202) |
(139) |
Income not taxable/taxable deductions |
301 |
222 |
Income taxable at higher rates |
(745) |
(589) |
Adjustments in respect of previous financial years |
12 |
(57) |
Total income tax expense |
(42,499) |
(49,289) |
Refer to the statement of other comprehensive income for details of the tax impacts therein.
Deferred tax assets and liabilities
Notes |
Pension obligations |
Tax losses forward |
Accelerated tax depreciation |
Right-of-use assets |
Lease liabilities |
Other |
Total |
|
At 1 January 2023 |
990 |
102,483 |
(245,797) |
(3,810) |
3,876 |
(206) |
(142,464) |
|
Recognised in income statement |
388 |
16,795 |
(66,548) |
1,873 |
(1,929) |
132 |
(49,289) |
|
Recognised in other comprehensive income |
1,210 |
- |
- |
- |
- |
- |
1,210 |
|
Recognised in equity |
105 |
- |
- |
- |
- |
- |
105 |
|
At 31 December 2023 |
2,693 |
119,278 |
(312,345) |
(1,937) |
1,947 |
(74) |
(190,438) |
|
Recognised in income statement |
477 |
32,399 |
(75,382) |
108 |
(98) |
(3) |
(42,499) |
|
Recognised in other comprehensive income |
(992) |
- |
- |
- |
- |
- |
(992) |
|
At 31 December 2024 |
2,178 |
151,677 |
(387,727) |
(1,829) |
1,849 |
(77) |
(233,929) |
Pillar Two model rules
Taxation is calculated at the prevailing standard corporation tax rate of 12.5% for the financial year end 2024.
On 18 December 2023 the Government of Ireland, enacted the Pillar Two income taxes legislation into Finance (No.2) Act 2023 which allows for a minimum effective tax rate of 15% to be applied to companies in the State subject to certain conditions. As Uisce Éireann is a standalone entity with no international activity and is not owned by any parties outside of the Republic of Ireland the legislation allows for a deferral period of five years. As a result, it is expected that Uisce Éireann will not be subject to Pillar Two rules until the financial year commencing 1 January 2029.
The Company continues to assess the impact of the Pillar Two income taxes legislation on its future financial performance.