7. Tax
Income tax
|
2025 €’000 |
2024 €’000 |
|
Current tax credit |
- |
- |
Deferred tax expense |
(51,126) |
(42,499) |
Total income tax |
(51,126) |
(42,499) |
Reconciliation of effective tax rate |
||
Profit before tax |
396,209 |
321,104 |
Taxed at 12.5% (2024: 12.5%) |
(49,526) |
(40,138) |
Depreciation on capital expenditure that is not deductible for tax purposes |
(780) |
(1,727) |
Other expenses not deductible for tax purposes |
(209) |
(202) |
Taxable deductions |
508 |
301 |
Income taxable at higher rates |
(848) |
(745) |
Adjustments in respect of previous financial years |
(271) |
12 |
Total income tax expense |
(51,126) |
(42,499) |
Refer to the statement of other comprehensive income for details of the tax impacts therein.
Deferred tax assets/ (liabilities)
Notes |
Pension €’000 |
Tax losses forward €’000 |
Accelerated tax depreciation €’000 |
Right-of-use assets €’000 |
Lease liabilities €’000 |
Other €’000 |
Total €’000 |
|
At 1 January 2024 |
2,693 |
119,278 |
(312,345) |
(1,937) |
1,947 |
(74) |
(190,438) |
|
Recognised in income statement |
477 |
32,399 |
(75,382) |
108 |
(98) |
(3) |
(42,499) |
|
Recognised in other comprehensive income |
(992) |
- |
- |
- |
- |
- |
(992) |
|
At 31 December 2024 |
2,178 |
151,677 |
(387,727) |
(1,829) |
1,849 |
(77) |
(233,929) |
|
Recognised in income statement |
341 |
37,714 |
(89,164) |
(1,375) |
1,344 |
14 |
(51,126) |
|
Recognised in other comprehensive income |
(2,173) |
- |
- |
- |
- |
- |
(2,173) |
|
At 31 December 2025 |
346 |
189,391 |
(476,891) |
(3,204) |
3,193 |
(63) |
(287,228) |
Pillar Two model rules
Taxation is calculated at the prevailing standard corporation tax rate of 12.5% for the financial year end 2025.
On 18 December 2023 the Government of Ireland, enacted the Pillar Two income taxes legislation into Finance (No.2) Act 2023 which allows for a minimum effective tax rate of 15% to be applied to companies in the State subject to certain conditions. As Uisce Éireann is a standalone entity with no international activity and is not owned by any parties outside of the Republic of Ireland the legislation allows for a deferral period of five years. As a result, it is expected that Uisce Éireann will not be subject to Pillar Two rules until the financial year commencing 1 January 2029.
The Company continues to assess the impact of the Pillar Two income taxes legislation on its future financial performance.