Current tax liabilities and receivables for the current period and for previous periods are measured at the amounts of the expected payment to tax authorities (reimbursable from the tax authorities) with the application of the tax rates and tax regulations already legally or practically binding at the balance-sheet date.
For the sake of financial reporting, the deferred income tax is calculated based on the balance sheet liabilities method in relation to the temporary differences as at the balance-sheet date between the tax value of assets and liabilities and their carrying amount.
Deferred income tax liability is recognised with regard to all taxable temporary differences, save for cases when:
Deferred tax assets are recognised on all deductible temporary differences as well as unused tax abatements and unused tax losses carried forward to the following years in an amount of probable future taxable revenue which will allow for using the aforementioned differences, assets and losses, save for cases when:
The carrying amount of the deferred income tax asset is verified as at each balance-sheet date and is subject to a relevant decrease by the amount corresponding to the lack of likelihood of generating taxable revenue in the amount sufficient to partly or fully realise the deferred income tax asset. The non-recognised deferred income tax asset is subject to revaluation as at each balance-sheet date and is recognised up to the amount reflecting the likelihood of generating future taxable revenue in an amount enabling the recovery of that asset.
Deferred income tax assets and deferred income tax liabilities are measured with the application of tax rates forecast for the period when the asset will be realised or the liability reversed, applying, as the basis, the tax rates (and tax regulations) in force on the balance sheet date or those which will certainly be in force in the future at the balance-sheet date.
Income tax applicable to the items recognised outside profit or loss is recognised in other comprehensive income for items to be reflected in other comprehensive income, or directly in equity for items to be reflected directly in equity.
The Group sets off deferred income tax assets against deferred income tax liabilities only and exclusively when it has an enforceable legal title to set off the receivables against liabilities due to the current tax, and the deferred income tax is related to the same tax-payer and the same tax authority.
Tax exemptions related to operations in Special Economic Zones
Subsidiaries: Alupol Packaging S.A. and Alupol Films sp. z o.o. carry out business activities in Special Economic Zones pursuant to appropriate permits. Moreover, in 2021, the companies of Grupa Kęty S.A. and Romb S.A. received decisions on aid for new investment projects. These enable exemption from income tax of the revenue generated on the activities specified in the respective permits/aid decisions, up to the value of the state aid limit, which depends on the capital expenditures under the particular permits/aid decisions, as well as the intensity of state aid in the relevant region.
The Group recognises the benefits resulting from the obtained state aid in accordance with IAS 12 Income Taxes. The Group recognises deferred income tax assets in the amount of the available state aid granted to the Group as at the particular balance sheet dates.
Revenue, costs and assets are recognised less VAT, except:
The net VAT amount recoverable from or payable to the tax authorities is recognised in the balance sheet as a part of public law receivables or payables.
