21. Income taxes

Loss carryforwards amounted to CHF 57.7 million (2022: CHF 8.0 million) in total at the end of the reporting year. No loss carryforwards were included in the calculation of the deferred income tax assets (2022: CHF 0.0 million). The impact of unrecognised loss carryforwards on the tax on earnings was CHF 11.6 million in the reporting year (2022: CHF 3.9 million). No unrecognised loss carryforwards were utilised in the reporting period (2022: CHF 2.8 million). There was no impact in the reporting year on income taxes due to the use of unrecognized losses carried forward (2022: CHF –0.7 million). In the reporting year, as in the previous year, there was no impact due to the utilisation or expiry of loss carryforwards.

The country-specific tax rates that apply to the calculation of the deferred taxes on earnings range from 11.6% to 24.0% (2022: 11.6% to 25.0%). The weighted average tax rate to be applied based on the ordinary result is 16.5% (2022: 17.5%).

In December 2021, the OECD published the Pillar Two model rules to introduce a global minimum tax of 15% for multinational companies with consolidated revenues of more than EUR 750 million. Meanwhile, relevant elements of Pillar Two legislation have been substantively enacted in many jurisdictions in which Vetropack operates including Switzerland. Such legislation will be effective for Vetropack’s financial year beginning on 1 January 2024. Due to uncertainties in the adjustment and implementation of local tax laws in the countries concerned, it is not yet possible to quantify the effects. Vetropack is monitoring the development of the Pillar Two rules and continually assesses the impact.