Taxation

Taxes and tax-like payments resulting from Sponda’s operations

Sponda reports on the economic effect on society created by its operations through taxes and tax-like payments. Transparent reporting is one element of our responsibility.

Each year, Sponda’s business operations result in the accrual and payment of taxes to the tax authorities in the form of many different taxes and tax-like payments. Sponda’s taxes resulting from business operations in Finland include income tax collected on the company’s taxable income, property taxes collected on the basis of property ownership, and excise taxes collected as part of electricity prices. In addition, a proportion of the value added taxes paid for goods and services remains as a balance payable by the company. As an employer, Sponda pays contributions related to pension and social security as well as deducts withholding taxes from wages and salaries and pay them to the tax authorities.

In 2015, the taxes arising from Sponda’s business operations amounted to EUR 25.9 million. In addition, Sponda paid withholding taxes deducted from wages and salaries at a total amount of EUR 3.6 million. The difference between remitted and deducted value added tax was EUR 9.4 million. The chart below illustrates the most significant taxes arising from Sponda’s operations and the withheld taxes. Sponda has not received substantial financial support for its operations from the public sector.

Sponda Group’s result calculated in accordance with IFRS deviates from the Group subsidiaries’ total combined taxable result. The IFRS does not permit annual depreciation of investment properties, instead requiring that properties are recorded at their current fair value. The annual changes in fair value are then recorded in the company’s result.

In taxation, the company applies normal depreciation on the purchase price of properties pursuant to tax law. These factors constitute a significant difference between the result recorded in the consolidated financial statements according to IFRS and the taxable result. The effects of the differences between the requirements of tax law and IFRS are taken into account in Sponda’s deferred taxes.