Question ID:
2013_261
Legal Act:
Regulation (EU) No 575/2013 (CRR)
Topic:
Own funds
Article:
469, 470, 478
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations:
Not applicable
Article/Paragraph:
n.a.
Disclose name of institution / entity:
No
Type of submitter:
Accounting firm
Subject Matter:
Consistency regarding the specification of the transition period according to Articles 469(1), 470(2) and 478(2) CRR
Question:

How can the applicable percentages of Article 478(2) CRR be applied for the purposes of Article 469(1)(c) CRR until 31.12.2023 provided that the provisions of Article 469(1)(c) and Article 470(2) CRR are applicable only until 31.12.2017?

Background on the question:

According to Article 469(1)(c) and Article. 470(2) there is a transition period until 31.12.2017 for the threshold deductions for deferred tax assets (DTA) relying on future profitability and resulting from temporary differences and significant investments in financial sector entities’ CET1-instrumtents.

However, with regard to DTA relying on future profitability and resulting from temporary differences that existed before 31.12.2014 the applicable percentage and the transition period (10% intervals until 31.12.2023) for the amount exceeding the thresholds differ from those (20% intervals until 31.12.2017) for the excess amounts from DTA relying on future profitability and resulting from temporary differences after 31.12.2014 and significant investments in financial sector entities’ CET1-instrumtens.

I.e., DTA relying on future profitability and resulting from temporary differences that existed before 31.12.2014 and exceeding the thresholds of Article 470(2) CRR may be deducted from CET1 according to the applicable percentages of Article 478(2) CRR until 31.12.2023, while simultaneously the permission to determine the threshold deductions according to Article 470 CRR and to determine the deduction amount according to Article 469(1)(c) CRR is restricted until 31.12.2017.

Consequently, the question arises to which deduction amount the applicable percentage according to Article 478(2) CRR should be applied between 31.12.2017 and 31.12.2023?

Date of submission:
17/09/2013
Published as Rejected Q&A
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.

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Status:
Rejected question
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