27. Taxation

The Group’s income tax expense recognized in the consolidated statement of profit or loss and other comprehensive loss was as follows:

The Group’s effective income tax expense differed from the expected theoretical amount computed by applying the Group’s applicable weighted average tax rate of 13.7% in 2022 (2021: 13.5%, 2020: 12.1%) as summarized in the following table:

The tax effect of taxable temporary differences that give rise to deferred income tax liabilities or to deferred income tax assets as of December 31 is presented below:

As of December 31, 2022, the Group had unrecognized tax loss carryforwards amounting to CHF 103.1 million (2021: CHF 109.9 million), of which CHF 101.4 million related to Auris Medical AG, Otolanum AG, Zilentin AG and Altamira Medica AG in Switzerland, CHF 1.7 million to Altamira Therapeutics Inc. in the United States (2021: CHF 108.6 million for Auris Medical AG, Otolanum AG, Zilentin AG and Altamira Medica AG and CHF 1.3 million for Auris Medical Inc.).

The Group’s unrecognized tax loss carryforwards with their expiry dates are as follows:

Due to the uncertainty surrounding the future results of operations and the uncertainty as to whether the Group can use the loss carryforwards for tax purposes, deferred tax assets on tax loss carryforwards were only considered to the extent that they offset taxable temporary differences within the same taxable entity. No deferred tax assets are calculated on temporary differences related to pension obligations from IAS 19.

The tax effect of the major unrecognized temporary differences and loss carryforwards is presented in the table below: