21 Income taxes
Current income taxes
Current income taxes are determined on the basis of the results for the reporting year, taking account of national tax laws in the relevant jurisdictions.
Deferred taxes
Deferred taxes are recognized using the balance sheet liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements.
Deferred tax assets are only recognized if it is probable that future profits will be available against which these assets can be offset for tax purposes. Forecasts and the interpretation of existing tax laws and regulations serve as the basis for the assumptions of whether such future offsetting is probable.
Deferred tax liabilities are recognized for taxable temporary differences arising from investments in Group companies where the Group controls the distribution of earnings from those Group companies and it is probable that the temporary differences will reverse in the foreseeable future.
Schindler is subject to the OECD Pillar Two model rules and applies the relevant exception when recognizing and disclosing deferred tax assets and liabilities related to these rules.
Changes in deferred tax assets and liabilities are recognized in the income statement, in OCI, or directly in equity, depending on where the underlying transaction that led to the change in deferred taxes is recognized.
Uncertain tax positions
Significant judgment is often required to interpret tax rules and regulations, and the final assessment may be made several years after the reporting year. Where there is uncertainty over whether the Group’s tax treatment will be accepted by the tax authority, the Group is required to reflect this uncertainty in the consolidated financial statements.
The income tax expenses recognized in the income statement are as follows:
| In CHF million | 2025 | 2024 | ||
|---|---|---|---|---|
| Current income taxes for the reporting year | 296 | 279 | ||
| Current income taxes from previous years | – | –9 | ||
| Deferred income taxes | –16 | –8 | ||
| Total income taxes | 280 | 262 |
The reconciliation of income tax expenses is as follows:
| In CHF million | 2025 | 2024 | ||
|---|---|---|---|---|
| Profit before taxes | 1 353 | 1 272 | ||
| Weighted average income tax rate – expected | 19.0% | 20.0% | ||
| Expected income tax expenses | 257 | 254 | ||
| Effects of | ||||
| Recognition/utilization of unrecognized tax loss carryforwards | 2 | 2 | ||
| Other non-taxable income/other non-deductible expenses | 9 | 4 | ||
| Non-refundable withholding taxes | 13 | 12 | ||
| Current income taxes from previous years | – | –9 | ||
| Other differences | –1 | –1 | ||
| Total income taxes | 280 | 262 | ||
| Weighted average income tax rate – effective | 20.7% | 20.6% |
The Group is subject to taxation in multiple jurisdictions worldwide. The weighted average income tax rate is calculated using the enacted tax rates applicable to the individual Group companies in each jurisdiction. Due to the composition of the Group’s taxable income and changes in local tax rates, the average tax rate typically varies from year to year.
In the reporting year and the previous year, the impacts of the OECD Pillar Two model rules on Schindler were not material.
Deferred taxes
Deferred taxes arise from the following positions in the consolidated balance sheet:
| 2025 | 2024 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| In CHF million | Deferred tax assets | Deferred tax liabilities | Net book value | Deferred tax assets | Deferred tax liabilities | Net book value | ||||||
| Current assets | 266 | –16 | 250 | 190 | –17 | 173 | ||||||
| Property, plant, and equipment | 6 | –20 | –14 | 5 | –21 | –16 | ||||||
| Right-of-use assets and Lease liabilities | 71 | –70 | 1 | 55 | –54 | 1 | ||||||
| Intangible assets | 4 | –126 | –122 | 10 | –132 | –122 | ||||||
| Current liabilities | 97 | –188 | –91 | 98 | –99 | –1 | ||||||
| Provisions | 75 | –17 | 58 | 82 | –29 | 53 | ||||||
| Employee benefits | 57 | –6 | 51 | 66 | –4 | 62 | ||||||
| Others | 2 | –5 | –3 | – | –6 | –6 | ||||||
| Tax loss carryforwards | 9 | 9 | 8 | 8 | ||||||||
| Net deferred taxes | 139 | 152 | ||||||||||
| thereof deferred tax assets | 275 | 317 | ||||||||||
| thereof deferred tax liabilities | –136 | –165 | ||||||||||
Changes in net deferred taxes are as follows:
| In CHF million | 2025 | 2024 | ||
|---|---|---|---|---|
| January 1 | 152 | 150 | ||
| Addition and reversal of temporary differences | ||||
| recognized in the income statement | 16 | 8 | ||
| recognized in OCI | 6 | –6 | ||
| Business combinations | –15 | –10 | ||
| Exchange differences | –20 | 10 | ||
| December 31 | 139 | 152 |
Tax loss carryforwards
| 2025 | 2024 | |||||||
|---|---|---|---|---|---|---|---|---|
| In CHF million | Loss carry-forwards | Tax effects | Loss carry-forwards | Tax effects | ||||
| Total | 228 | 46 | 233 | 43 | ||||
| Recognized as deferred tax assets | –39 | –9 | –34 | –8 | ||||
| Total unrecognized | 189 | 37 | 199 | 35 | ||||
| thereof expiring | ||||||||
| < 1 year | – | – | 2 | – | ||||
| 1–5 years | 78 | 11 | 64 | 9 | ||||
| > 5 years | 111 | 26 | 133 | 26 | ||||
Unrecognized deferred tax assets
| In CHF million | 2025 | 2024 | ||
|---|---|---|---|---|
| Temporary differences | 4 | 9 | ||
| Tax loss carryforwards | 189 | 199 | ||
| Total basis | 193 | 208 | ||
| Unrecognized deferred tax assets | 39 | 37 | ||
| Average tax rate | 20.2% | 17.8% |