AIRBUS - 2019 Financial Statements

Notes to the IFRS Company Financial Statements / 7. Income Tax The Company is tax registered in the Netherlands. The Company is heading a fiscal unity, which also includes Airbus Finance B.V. and Airbus Defence and Space Netherlands B.V. and therefore the Company is severally and jointly liable for income tax liabilities of the fiscal unity as a whole. Income taxes — The tax expense for the year comprises deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised directly in Other Comprehensive Income. The amount of income tax included in the Income Statement is determined in accordance with the rules established by the tax authorities in the Netherlands, based on which income taxes are payable or recoverable. Deferred tax assets and/or liabilities, arising from temporary differences between the carrying amounts of assets and liabilities and the tax base of assets and liabilities, are calculated using the substantively enacted tax rates expected to apply when they are realised or settled. Deferred tax assets are recognised if it is probable that they will be realised. The expense for income taxes is comprised of the following: (In € million) 2019 2018 Current tax expense 0 0 Deferred tax expense (5) (32) Total (5) (32) The following table shows reconciliation from the theoretical income tax expense using the Dutch corporate tax rate to the reported income tax expense: (In € million) 2019 2018 Profit before income taxes (3,660) (195) Corporate income tax rate 25.0% 25.0% Expected income for income taxes 915 42 Non-deductible final agreements reahed with PNF, SFO and DoS (899) 0 Non-taxable income from investment and associates (10) (80) Option liability exchangeable bond 7 7 Income from other companies within the fiscal unity (1) (1) Impairment of deferred tax stock 0 12 Other non-deductible expenses and tax-free incomes (17) (13) Reported tax (expense) (5) (32) The first tranche of tax loss carry forwards (€22 million) will expire by the end of 2027. Deferred income taxes as of 31 December 2019 are related to the following assets and liabilities: (In € million) 1 January 2019 Other movements Movement through income statement 31 December 2019 Deferred tax assets Deferred tax liabilities OCI Others Deferred tax benefit (expense) Deferred tax assets Deferred tax liabilities Securities 0 (8) (41) 0 0 0 (50) Financial instruments 0 (1) 0 0 (5) 0 (6) Net operating loss and tax loss carry forwards 21 0 0 0 1 22 0 Deferred tax assets (liabilities) before offsetting 21 (9) (41) 0 (4) 22 (56) Set-off (9) 9 0 0 0 (22) 22 Net deferred tax assets (liabilities) 12 0 (41) 0 (4) 0 (34) 96 Airbus / Financial Statements 2019