CHAPTER 7:Taxation

	Group		Company
At 31 December	2023 Rm	2022 Rm	2023 Rm	2022 Rm
The movements on deferred tax are as follows:
At beginning of the year	(8 414)	(7 902)	234	195
Items charged to profit or loss	(333)	(512)	(3)	(15)
– Current year	(331)	(856)	(3)	(5)
– Prior year	(2)	28		(5)
– Reduction in tax rate		316		(5)
Items charged directly to equity	(84)	88	(51)	54
– Share-based payments movement	(83)	88	(51)	54
– Cash flow hedges	(1)
Items charged directly to other comprehensive income	34	(88)
– Cash flow hedges	22	(70)
– Cost of hedging	3
– Financial assets at FVOCI	9	(18)

At end of the year	(8 797)	(8 414)	180	234
– Deferred tax asset	206	254	180	234
– Deferred tax liability	(9 003)	(8 668)

	Group
	At 31 December 2022
	Assets Rm	Liabilities Rm	Total net liability Rm

Property, plant and equipment	(9)	(9 307)	(9 316)
Customer contracts		(603)	(603)
Right-of-use assets	(80)	(14)	(94)
Share-based payments	157	100	257
Other accruals and provisions	83	(34)	49
Bad debt reassessment	1	12	13
Restoration provisions	138	541	679
Decommissioning provisions		82	82
Leave pay accrual	8	55	63
Retention payables		49	49
Prepayments	(2)	(78)	(80)
Environmental rehabilitation funds	(11)	(597)	(608)
Income received in advance		8	8
Inventories	1	95	96
Lease receivables		(13)	(13)
Local tax losses carried forward	117	1 016	1 133
Revaluation of financial assets at FVOCI		(113)	(113)
Retirement employee obligations		44	44
Deferred tax assets not recognised or derecognised	(268)	(89)	(357)
Unclaimed donations	1	45	46
Lease liabilities	113	16	129
Cash flow hedge reserves		27	27
Cost of hedging reserve
Contributions to Exxaro ESOP Trust	5	90	95

Total	254	(8 668)	(8 414)

	Group
	Movement during the year			At 31 December 2023
	Recognised in profit or loss Rm	Recognised in OCI Rm	Recognised directly in equity Rm	Assets Rm	Liabilities Rm	Total net liability Rm

Property, plant and equipment	(60)			(11)	(9 365)	(9 376)
Customer contracts	44				(559)	(559)
Right-of-use assets	17			(63)	(14)	(77)
Share-based payments			(83)	104	70	174
Other accruals and provisions	(60)			61	(72)	(11)
Bad debt reassessment	(7)				6	6
Restoration provisions	97			205	571	776
Decommissioning provisions	(13)			1	68	69
Leave pay accrual	5			9	59	68
Retention payables	(24)				25	25
Prepayments	16			(3)	(61)	(64)
Environmental rehabilitation funds	(66)			(12)	(662)	(674)
Income received in advance	1				9	9
Inventories	(55)			3	38	41
Lease receivables	2				(11)	(11)
Local tax losses carried forward	(70)			166	897	1 063
Revaluation of financial assets at FVOCI		9			(104)	(104)
Retirement employee obligations	4				48	48
Deferred tax assets not recognised or
derecognised	(105)			(375)	(87)	(462)
Unclaimed donations	(24)				22	22
Lease liabilities	(8)			105	16	121
Cash flow hedge reserves	(13)	22	(1)	9	26	35
Cost of hedging reserve		3		3		3
Contributions to Exxaro ESOP Trust	(14)			4	77	81

Total	(333)	34	(84)	206	(9 003)	(8 797)

	Company
	At 31 December 2022	Movement during the year		At 31 December 2023
	Total asset Rm	Recognised in profit or loss Rm	Recognised directly in equity Rm	Total asset¹ Rm
Property, plant and equipment	(12)	(2)		(14)
Right-of-use assets	(80)	13		(67)
Share-based payments	156	(1)	(51)	104
Other accruals and provisions	45	(24)		21
Bad debt reassessment	1	(1)
Restoration provisions	13	1		14
Leave pay accrual	7			7
Environmental rehabilitation funds	(9)	(1)		(10)
Prepayments	(2)			(2)
Lease liabilities	112	(9)		103
Calculated losses		21		21
Contributions to Exxaro ESOP Trust	3			3
Total	234	(3)	(51)	180

¹	The deferred tax asset recognised for the company is supported by sufficient forecast profits to be utilised. The forecast profits are based on agreements in place with commodity businesses within Exxaro.

	Group
At 31 December	2023 Rm	2022 Rm
Deferred tax assets not recognised, relating to:
– Local accumulated tax losses	(237)	(206)
– Current year tax losses calculated	(42)	(38)