Tax Strategy
HUGO BOSS firmly believes that paying tax is of central importance to our global economic and social relationships. By paying taxes, the company assumes responsibility for actions in every country it operates in.
The fiscal framework of globalized business is often complex and subject to interpretation by authorities and corporate management. Recent international developments have also led to tax legislation changing more quickly than previously.
Aside from complying with tax regulations, having adequate risk management structures in place is crucial. Clearly defined roles and responsibilities further enable taxes to be handled in a professional and targeted manner. For HUGO BOSS, this includes fair cooperation in the spirit of partnership with local financial authorities.
For this purpose, HUGO BOSS has drawn up a tax strategy aimed at ensuring that legal obligations are met throughout the Group as a whole, as well as aligning it with our economic activities.
– The Managing Board
| (In EUR thousand) | 2020 |
|---|---|
| Earnings before taxes | (273,236) |
| Anticipated income tax | (80,741) |
| Tax effects of permanent items | 5,076 |
| Tax rate-related deviation | 13,109 |
| thereof effects of changes in tax rates | 389 |
| thereof adjustments of tax amount to diverging local tax rate | 12,720 |
| Tax refund/tax arrears | 5,055 |
| Deferred tax effects from prior years | (1,431) |
| Valuation allowance on deferred tax assets | 5,925 |
| Tax effects from distributable profit of subsidiaries) | 135 |
| Other deviations | (1,182) |
| Income tax expenditure reported | (54,054) |
| Income tax burden | 20% |