6. Taxes

6.1. Income tax

6.2. Reconciliation of effective tax rate

In 2023 and 2022, the Corporate Income Tax rate (CIT) applied to companies operating in Portugal was 21%. For companies with a positive tax result, there is a surcharge of 1.5% regarding municipal tax, and an additional state tax that varies between 3%, 5% and 9%, for taxable profits higher than €1,500 thousand, €7,500 thousand and €35,000 thousand respectively.

JMH’s effective tax rate is significantly influenced by the fiscal effect of the dividend income received from subsidiaries. This income is not subject to taxation according with the current tax legislation, as it has already been considered for Income Tax purposes in the companies which generated them.

6.3. Deferred tax assets and liabilities

JMH did not recognised any amounts in deferred taxes regarding uncertain tax positions.

Regarding the International Tax Reform – Pillar Two Model Rules, JMH confirms the application of the exception to the recognition and disclosure of information about deferred tax assets and liabilities calculated according with the Pilar Two Model, with no amount recognized in taxes in the income statement on 31 December 2023.

As of the date of preparation of this Annual Report, the respective directive has not yet been transposed into Portuguese legislation, so it is not possible to determine potential impacts resulting from its application in the future.

6.4. Receivable or payable income tax

Income tax reflected on the balance sheet is as follows:

Since 1 January 2014, JMH integrates a group of companies taxed according with the Special Group Taxation Regime (RETGS), as the dominant Company of the group. In addition to JMH, the taxation group is currently composed of the following companies:

• Recheio, SGPS, S.A.
• Recheio – Cash & Carry, S.A.
• Imocash – Imobiliário de Distribuição, S.A.
• Larantigo – Sociedade de Construções, S.A.
• Trade Wings, S.A.
• Recheio Masterchef, Lda.
• Jerónimo Martins – Serviços, S.A.
• Desimo, Lda.
• Jerónimo Martins – Agro-Alimentar, S.A.
• Terra Alegre Lacticínios, S.A.
• Best-Farmer – Actividades Agro-pecuárias, S.A.
• Seaculture – Aquicultura, S.A.
• Ovinos da Tapada – Agropecuária, Lda.
• Outro Chão – Agricultura Biológica, Lda.
• João Gomes Camacho, S.A.
• Jerónimo Martins – Restauração e Serviços, S.A.
• Jerónimo Martins Inovação, S.A.
• Santa Maria Manuela Turismo, S.A.

6.5. Unrecognised deferred taxes on tax losses

JMH did not recognise deferred tax assets related to tax losses in respect of which, with reasonable accuracy, no sufficient future taxable profits are expected to guarantee the recovery of deferred tax assets in the short and/or medium-term. According with the legislation in force in Portugal, there is not a limit period of time for carrying forward tax losses. Total unrecognised deferred tax asset as of 31 December 2023 amounts to €15,815 thousand (2022: €11,234 thousand).