17 Income Taxes

Deferred taxes of the Group companies are measured at the tax rates that apply, or are expected to apply, to the period when the tax asset is realized or the liability is settled based on the current legislation in the countries in question. The temporary differences of the Group companies are predominantly attributable to residential property. As a result of the gradual cut in the corporate income tax rate from the current level of 15% to 10% by 2032 adopted by the legislator in Germany during the period covered by these financial statements, and given the very long-term nature of the temporary differences, deferred taxes are largely to be measured at the corporate income tax rate of 10% that will apply as of 2032. The resulting drop in deferred tax liabilities is estimated to result in deferred tax income of between € 2.2 billion and € 2.3 billion in 2025. This was not yet to be reported in the half-year financial statements as of June 30, 2025.