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Breadcrumb

  1. Home
  2. Single Rulebook Q&A
  3. 2013_260 Applying the two different applicable percentages of Articles 478(1) and 478(2) CRR to the amount exceeding the thresholds of Article 470(2) CRR
Question ID
2013_260
Legal act
Regulation (EU) No 575/2013 (CRR)
Topic
Own funds
Article
478
Paragraph
1, 2
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
Not applicable
Article/Paragraph
n.a.
Type of submitter
Accounting firm
Subject matter
Applying the two different applicable percentages of Articles 478(1) and 478(2) CRR to the amount exceeding the thresholds of Article 470(2) CRR
Question

How should the two different applicable percentages of Articles 478(1) and 478(2) CRR be applied to the total amount required to be deducted according to Article 36(1)(c) and (i) CRR after applying Article. 470 CRR?

Background on the question

The amount after the calculation of the threshold deductions according to Article 470 CRR exceeding the thresholds specified by Article 470(2) CRR comprises the following components:

• DTA that rely on future profitability and arise from temporary differences, both before and after 1.1.2014; and
• significant investments in financial sector CET1 instruments.

However, according to Articles 478(1) and 478(2) CRR two different applicable percentages have to be applied to this amount. Consequently, the question arises how the aforementioned amount has to be split up between the portion for Deferred Tax Assets (DTA) that rely on future profitability and arise from temporary differences after 1.1.2014 and the significant investments in financial sector CET1 instruments (subject to the percentages of Article 478(1)) on the one side and DTA that rely on future profitability and arise from temporary differences existing before 1.1.2014 (subject to Articlce 478(2)) on the other side.

The CRR does not provide any rules for splitting up the amount exceeding the thresholds.

Submission date
17/09/2013
Rejected publishing date
11/02/2022
Rationale for rejection

Please note that as part of adjustments to the Single Rulebook Q&A process, agreed by the EBA and the European Commission, it has been decided to reject outstanding questions submitted before 1 January 2020, when the Q&A process was updated as part of the last ESAs Review. In particular, the question that you have submitted has now regrettably been rejected and will not be addressed.

If you believe your question would still benefit from clarification, you are invited to resubmit your question, adapting it to reflect any legislative, regulatory or other relevant developments that may have occurred since the initial date of submission. The EBA will aim to address resubmitted questions as a matter of priority. When considering to resubmit, you are kindly requested to observe the updated admissibility criteria agreed in the context of the adjustment of the Q&A process, available in the Additional background and guidance for asking questions. We hope for your understanding.

For further information please refer to the press release and the updated Q&A page.

Status
Rejected question

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