Income taxes	12 Months Ended
Income taxes	Dec. 31, 2023
Income Taxes [Line Items]
Disclosure Of Income Tax Explanatory	Note 9 Income taxes For the year ended USD m 31.12.23 31.12.22 31.12.21 Tax expense / (benefit) Swiss Current 883 730 680 Deferred 152 (15) 34 Total Swiss 1,035 715 714 Non-Swiss Current 684 718 884 Deferred (846) 509 400 Total non-Swiss (162) 1,227 1,284 Total income tax expense / (benefit) recognized in the income statement 873 1,942 1,998 Income tax recognized in the income statement The Swiss current tax expenses related to taxable profits of UBS Switzerland AG and other Swiss entities. The Swiss deferred tax expenses primarily related to the amortization of deferred tax assets (DTAs), as deductions related to temporary differences were made against profits. The non-Swiss current tax expenses related to expenses of USD 100 m in respect of US corporate alternative minimum tax (CAMT) and USD 584 m in respect of other taxable profits of non-Swiss subsidiaries and branches. The non-Swiss net deferred tax benefit primarily related to a benefit of USD 754 m in respect of remeasurements of DTAs, which included USD 480 m in respect of net upward revaluations of DTAs for certain entities in connection with the Group’s business planning process and USD 274 m in respect of an increase in DTAs that resulted from an increase in the expected value of future tax deductions for deferred compensation awards due to an increase in the Group’s share price during the year. In addition, the net deferred tax benefit also included a benefit of USD 100 m in respect of the recognition of DTAs for tax credits carried forward in respect of CAMT, which was partly offset by a net deferred tax expense of USD 8 m. The low effective tax rate for the year of 3.0 % primarily reflected that the negative goodwill gain that was recorded in the income statement did not result in any tax expense, as well as the aforementioned tax benefit of USD 754 m in respect of the remeasurement of DTAs. However, these benefits were partly offset by the impact of operating losses that were incurred by certain entities, reflecting integration-related expenses and restructuring costs, that did not result in any tax benefits because they cannot be offset with profits of other group entities and they did not result in any DTA recognition. If further such operating losses are incurred in 2024, the Group’s tax expense for the year may be significantly higher than the Group’s structural rate of 23 %, but the Group’s effective tax rate is expected to decrease towards the structural rate in subsequent years, as such losses decrease. For the year ended USD m 31.12.23 31.12.22 31.12.21 Operating profit / (loss) before tax 28,739 9,604 9,484 of which: Swiss 32,300 4,425 3,334 of which: non-Swiss (3,561) 5,178 6,150 Income taxes at Swiss tax rate of 18.5 % for 2023, 18 % for 2022 and 18.5 % for 2021 5,317 1,729 1,755 Increase / (decrease) resulting from: Non-Swiss tax rates differing from Swiss tax rate (224) 284 234 Tax effects of losses not recognized 1,584 74 124 Previously unrecognized tax losses now utilized (401) (217) (179) Non-taxable and lower-taxed income 1 (5,730) (335) (278) Non-deductible expenses and additional taxable income 1,651 429 510 Adjustments related to prior years, current tax (87) (41) (40) Adjustments related to prior years, deferred tax (1) 13 (10) Change in deferred tax recognition (1,288) (217) (342) Adjustments to deferred tax balances arising from changes in tax rates 26 0 (5) Other items 25 222 231 Income tax expense / (benefit) 873 1,942 1,998 1 The reconciling item for non-taxable and lower-taxed income for 2023 primarily reflects that the negative goodwill gain that was recorded in the income statement in relation to the acquisition of Credit Suisse did not result in any tax expense. The components of operating profit before tax, and the differences between income tax expense reflected in the financial statements and the amounts calculated at the Swiss tax rate, are provided in the table above and explained below. Component Description Non-Swiss tax rates differing from the Swiss tax rate To the extent that Group profits or losses arise outside Switzerland, the applicable local tax rate may differ from the Swiss tax rate. This item reflects, for such profits, an adjustment from the tax expense that would arise at the Swiss tax rate to the tax expense that would arise at the applicable local tax rate. Similarly, it reflects, for such losses, an adjustment from the tax benefit that would arise at the Swiss tax rate to the tax benefit that would arise at the applicable local tax rate. Tax effects of losses not recognized This item relates to tax losses of entities arising in the year that are not recognized as DTAs and where no tax benefit arises in relation to those losses. Therefore, the tax benefit calculated by applying the local tax rate to those losses as described above is reversed. Previously unrecognized tax losses now utilized This item relates to taxable profits of the year that are offset by tax losses of previous years for which no DTAs were previously recorded. Consequently, no current tax or deferred tax expense arises in relation to those taxable profits and the tax expense calculated by applying the local tax rate on those profits is reversed. Non-taxable and lower- taxed income This item relates to tax deductions for the year in respect of permanent differences. These include deductions in respect of profits that are either not taxable or are taxable at a lower rate of tax than the local tax rate. They also include deductions made for tax purposes, which are not reflected in the accounts. Non-deductible expenses and additional taxable income This item relates to additional taxable income for the year in respect of permanent differences. These include income that is recognized for tax purposes by an entity but is not included in its profit that is reported in the financial statements, as well as expenses for the year that are non-deductible (e.g., client entertainment costs are not deductible in certain locations). Adjustments related to prior years, current tax This item relates to adjustments to current tax expense for prior years (e.g., if the tax payable for a year is agreed with the tax authorities in an amount that differs from the amount previously reflected in the financial statements). Adjustments related to prior years, deferred tax This item relates to adjustments to deferred tax positions recognized in prior years (e.g., if a tax loss for a year is fully recognized and the amount of the tax loss agreed with the tax authorities is expected to differ from the amount previously recognized as DTAs in the accounts). Change in deferred tax recognition This item relates to changes in DTAs, including changes in DTAs previously recognized resulting from reassessments of expected future taxable profits. It also includes changes in temporary differences in the year, for which deferred tax is not recognized. Adjustments to deferred tax balances arising from changes in tax rates This item relates to remeasurements of DTAs and liabilities recognized due to changes in tax rates. These have the effect of changing the future tax saving that is expected from tax losses or deductible tax differences and therefore the amount of DTAs recognized or, alternatively, changing the tax cost of additional taxable income from taxable temporary differences and therefore the deferred tax liability. Other items Other items include other differences between profits or losses at the local tax rate and the actual local tax expense or benefit, including movements in provisions for uncertain positions in relation to the current year and other items. Income tax recognized directly in equity A net tax expense of USD 314 m was recognized in Other comprehensive income (2022: net benefit of USD 1,116 m) and a net tax benefit of USD 19 m was recognized in Share premium (2022: net benefit of USD 13 m). Deferred tax assets and liabilities The Group has gross DTAs, valuation allowances and recognized DTAs related to tax loss carry-forwards and deductible temporary differences, as well as deferred tax liabilities in respect of taxable temporary differences, as shown in the table below. The valuation allowances reflect DTAs that were not recognized because, as of the last remeasurement period, management did not consider it probable that there would be sufficient future taxable profits available to utilize the related tax loss carry-forwards and deductible temporary differences. The recognition of DTAs is supported by forecasts of taxable profits for the entities concerned. In addition, tax planning opportunities are available that would result in additional future taxable income and these would be utilized, if necessary. Deferred tax liabilities are recognized in respect of investments in subsidiaries, branches and associates, and interests in joint arrangements, except to the extent that the Group can control the timing of the reversal of the associated taxable temporary difference and it is probable that such will not reverse in the foreseeable future. However, as of 31 December 2023, this exception was not considered to apply to any taxable temporary differences. USD m 31.12.23 31.12.22 Deferred tax assets 1 Gross Valuation allowance Recognized Gross Valuation allowance Recognized Tax loss carry-forwards 19,070 (16,078) 2,992 12,708 (8,720) 3,988 Unused tax credits 95 0 95 0 0 0 Temporary differences 11,159 (3,564) 7,595 5,814 (414) 5,400 of which: related to real estate costs capitalized for US tax purposes 2,703 0 2,703 2,485 0 2,485 of which: related to compensation and benefits 1,795 (471) 1,324 1,194 (175) 1,018 of which: related to cash flow hedges 765 (139) 626 947 0 947 of which: other 5,896 (2,954) 2,942 1,188 (238) 950 Total deferred tax assets 30,324 (19,642) 10,682 2 18,522 (9,134) 9,389 2 of which: related to the US 9,023 8,294 of which: related to other locations 1,659 1,095 Deferred tax liabilities Total deferred tax liabilities 325 236 1 After offset of DTLs, as applicable. 2 As of 31 December 2023, the Group recognized DTAs of USD 426 m (31 December 2022: USD 471 m) in respect of entities that incurred losses in either the current or preceding year. In general, US federal tax losses incurred prior to 31 December 2017 can be carried forward for 20 years. US federal tax losses incurred after that date can be carried forward indefinitely, although the utilization of such losses is limited to 80% of the entity’s future year taxable profits. UK tax losses can also be carried forward indefinitely; they can shelter up to either 25% or 50% of future year taxable profits, depending on when the tax losses arose. The amounts of US tax loss carry-forwards that are included in the table below are based on their amount for federal tax purposes rather than for state and local tax purposes. Unrecognized tax loss carry-forwards USD m 31.12.23 31.12.22 Within 1 year 342 231 From 2 to 5 years 10,839 2,184 From 6 to 10 years 7,114 11,106 From 11 to 20 years 1,818 1,610 No expiry 44,222 16,960 Total 64,335 32,091 of which: related to the US 1 12,354 13,350 of which: related to the UK 37,773 14,332 of which: related to other locations 14,208 4,409 1 Related to UBS AG’s US branch.