We have calculated our corporate (income) tax liability on the basis of the applicable tax rates, taking account of the tax rules and the valuation of temporary differences. The effective tax rate for profit before corporation tax was -276% (2020: -4.7%). This lower effective tax rate compared with the nominal tax rate is mainly caused by amended tax regulations in the Netherlands pursuant to which losses can be carried forward indefinitely. This has resulted in an upward valuation of the deferred assets in the Netherlands, in the amount of €367 million. In the United Kingdom, an asset of €17 million is recognised in connection with the tax deductibility of the termination fees paid.
Other tax information
Payroll tax is a tax that NS, as the employer, withholds from the salaries of its employees and then pays to the Dutch Tax Administration (Belastingdienst). In 2020, the Tax Administration granted a deferral of payroll tax due. This tax was paid in 2021. NS’s costs are largely subject to the high VAT rate. NS can set off the VAT charged against the VAT that it has to pay on its sales. Most of NS’s sales are taxed at the lower VAT rate or are zero-rated. In the United Kingdom, the VAT rate on the sale of train tickets is zero. The taxable profit is liable to corporate income tax. The amounts paid or received are shown in the table below, in millions of euros.
Overview of taxes per country in € million (minus sign refers to paid taxes)
Corporate income tax
The United Kingdom