The rule in plain words
Rows R0600 to R0690 are not applicable when LAC DT is not used
What to do if your return fails it
- 01Open the tables below and find the cells the rule reads.
- 02The check applies only when its first part holds in your return. When it does, the second part must hold too: fix the second part, or correct the first.
- 03It runs only when your filing indicators mark S.25.05 as reported.
- 04This is a warning. It does not stop the return on its own, but your supervisor may ask you to explain it.
The cells it reads
Solvency capital requirement - for undertakings on standard formula: approach to tax rate (S.25.01.01.03)
Row
- R0590Approach based on average tax rate
Column
- C0109Yes/No
Solvency capital requirement - for undertakings on standard formula: calculation of loss absorbing capacity of deferred taxes (S.25.01.01.04)
Rows
- R0600DTA
- R0610DTA carry forward
- R0620DTA due to deductible temporary differences
- R0630DTL
Columns
- C0110Before the shock
- C0120After the shock
Solvency capital requirement - for undertakings using an internal model (partial or full): calculation of solvency capital requirement (S.25.05.01.02)
Row
- R0310Amount/estimate of the loss absorbing capacity for deferred taxes
Column
- C0100Value
Solvency capital requirement - for undertakings using an internal model (partial or full): approach to tax rate (S.25.05.01.03)
Row
- R0590Approach based on average tax rate
Column
- C0109Yes/No
Solvency capital requirement - for undertakings using an internal model (partial or full): calculation of loss absorbing capacity of deferred taxes (S.25.05.01.04)
Rows
- R0600DTA
- R0610DTA carry forward
- R0620DTA due to deductible temporary differences
- R0630DTL
Columns
- C0110Before the shock
- C0120After the shock
Solvency capital requirement - for undertakings using an internal model (partial or full): calculation of loss absorbing capacity of deferred taxes (S.25.05.01.05)
Rows
- R0650Amount/estimate of LAC DT justified by reversion of deferred tax liabilities
- R0660Amount/estimate of LAC DT justified by reference to probable future taxable economic profit
- R0670Amount/estimate of LAC DT justified by carry back, current year
- R0680Amount/estimate of LAC DT justified by carry back, future years
- R0690Amount/estimate of Maximum LAC DT
Column
- C0130LAC DT
Which returns it applies to
Line4 Check runs it on annual solo (ARS) and annual branch (ARB) returns on EIOPA taxonomy 2.10.0. EIOPA applies it to annual ECB solo (AES), annual ECB branch (AEB), annual solo (ARS) and annual branch (ARB) returns, as a warning.
EIOPA’s own words and formula
The plain words above are EIOPA’s own, word for word, from its list of validations.
Show the formulaShowHide
EIOPA's formula. Cells are written as {t: table, r: row, c: column}.
if ({t: S.25.05.01.03, r: R0590, c: C0109} = [s2c_AP:x77]) then isNull({t: S.25.05.01.04, r: R0600, c: C0110, z: Z0001}) and isNull({t: S.25.05.01.04, r: R0610, c: C0110, z: Z0001}) and isNull({t: S.25.05.01.04, r: R0620, c: C0110, z: Z0001}) and isNull({t: S.25.05.01.04, r: R0630, c: C0110, z: Z0001}) and isNull({t: S.25.05.01.04, r: R0600, c: C0120, z: Z0001}) and isNull({t: S.25.05.01.04, r: R0610, c: C0120, z: Z0001}) and isNull({t: S.25.05.01.04, r: R0620, c: C0120, z: Z0001}) and isNull({t: S.25.05.01.04, r: R0630, c: C0120, z: Z0001}) and isNull({t: S.25.05.01.05, r: R0640, c: C0130, z: Z0001}) and isNull({t: S.25.05.01.05, r: R0650, c: C0130, z: Z0001}) and isNull({t: S.25.05.01.05, r: R0660, c: C0130, z: Z0001}) and isNull({t: S.25.05.01.05, r: R0670, c: C0130, z: Z0001}) and isNull({t: S.25.05.01.05, r: R0680, c: C0130, z: Z0001}) and isNull({t: S.25.05.01.05, r: R0690, c: C0130, z: Z0001}) else true()Other rules on Solvency capital requirement - for undertakings on standard formula (S.25.01)
- Solvency capital requirement - for undertakings on standard formula and solvency capital requirement - for undertakings using an internal model (partial or full): a conditional check (BV1076)
- Solvency capital requirement - for undertakings on standard formula and solvency capital requirement - for undertakings using an internal model (partial or full): a conditional check (BV1080)
- Solvency capital requirement - for undertakings on standard formula and solvency capital requirement - for undertakings using an internal model (partial or full): a conditional check (BV1074)
- Solvency capital requirement - for undertakings on standard formula and solvency capital requirement - for undertakings using an internal model (partial or full): a total must equal the sum of its parts (BV1086)
- Solvency capital requirement - for undertakings on standard formula and solvency capital requirement - for undertakings using an internal model (partial or full): a total must equal the sum of its parts (BV1088)
- Solvency capital requirement - for undertakings on standard formula: a total must equal the sum of its parts (BV1051)
- Solvency capital requirement - for undertakings on standard formula and solvency capital requirement - market risk: a total must equal the sum of its parts (BV1157)
- Solvency capital requirement - for undertakings on standard formula: a total must equal the sum of its parts (BV1773)
Every Solvency II rule on S.25.01
Checks like this one, run at the point of submission, are the first step to real-time supervision. Line4 builds SupTech software for financial regulators that runs checks like these as each return arrives.