12. Deferred income tax
The changes in deferred tax assets and liabilities are as follows.
(in millions of euros) | Net balance as at 1 January 2022 | Recognised in profit or loss | Recognised in other comprehensive income | Held for sale | Net positions as at 31 December 2022 | Deferred tax assets | Deferred tax liabilities |
Property, plant and equipment | 298 | -53 | - | -3 | 242 | 242 | - |
Intangible non-current assets | 27 | 2 | - | - | 29 | 29 | - |
Right-of-use assets | -172 | 1 | - | 134 | -37 | -37 | - |
Non-current financial assets | -3 | 3 | - | - | - | 17 | 17 |
Receivables | -2 | -1 | - | - | -3 | -3 | - |
Provisions | 2 | -3 | - | 1 | - | - | - |
Deferred credits | -7 | 17 | - | - | 10 | 10 | - |
Loans and other financial liabilities | - | - | - | - | - | - | - |
Lease liabilities | 180 | -23 | - | -134 | 23 | 23 | - |
Other items | 3 | -1 | 2 | - | 4 | 4 | - |
Loss set-off | 39 | 26 | - | -17 | 48 | 48 | - |
Deferred tax assets (liabilities) | 365 | -32 | 2 | -19 | 316 | 333 | 17 |
Set-off of receivables and liabilities | -17 | -17 | |||||
Deferred tax assets (liabilities) after set-off | 316 | - | |||||
(in millions of euros) | Net balance as at 1 January 2021 | Recognised in profit or loss | Recognised in other comprehensive income | Other movements | Net positions as at 31 December 2021 | Deferred tax assets | Deferred tax liabilities |
Property, plant and equipment | 22 | 276 | - | - | 298 | 322 | 24 |
Intangible non-current assets | -17 | 61 | - | -17 | 27 | 27 | - |
Right-of-use assets | -500 | 328 | - | - | -172 | -160 | 12 |
Non-current financial assets | -6 | 8 | -5 | - | -3 | 5 | 8 |
Receivables | -2 | - | - | - | -2 | 3 | 5 |
Provisions | 5 | -3 | - | - | 2 | 2 | - |
Deferred credits | 18 | -29 | - | 4 | -7 | -6 | 1 |
Loans and other financial liabilities | - | - | - | - | - | - | - |
Lease liabilities | 502 | -324 | - | 2 | 180 | 180 | - |
Other items | 3 | -1 | - | 1 | 3 | 3 | - |
Loss set-off | 15 | 39 | - | -15 | 39 | 39 | - |
Deferred tax assets (liabilities) | 40 | 355 | -5 | -25 | 365 | 415 | 50 |
Set-off of receivables and liabilities | -48 | -48 | |||||
Deferred tax assets (liabilities) after set-off | 367 | 2 |
An assessment has been carried out of the projected profits for the years up to and including 2024 and projected profits over the term of the new franchise. This has led to an upward revaluation of the tax asset temporary differences and losses offset against tax in the amount of € 74 million. The total amount of recognised deferred tax assets in the Netherlands is € 316 million. For an explanation of the tax rate, see note 11.
Unrecognised deferred tax assets
Deferred tax assets have not been recognised in respect of the following items because it is unlikely that there will be taxable profit in the future against which the Group can utilise the benefits. The unrecognised deferred tax assets by country are as follows:
(in millions of euros) | Offsettable losses | Temporary differences | Total |
The Netherlands | - | 508 | 508 |
Germany | - | 10 | 10 |
Total | - | 518 | 518 |
Accounting policy
The deferred tax assets and deferred tax liabilities arise from temporary differences between the carrying amount of assets and liabilities in the financial reporting and their tax base. These are calculated on the basis of the tax rates that are expected to apply when the temporary differences are reversed, using tax rates enacted or substantively enacted as at the reporting date.
Deferred tax assets, including those deriving from tax loss carry-forwards, are measured if it is probable that sufficient tax profits will be available for setting off the losses and if possibilities for offsetting losses can be utilised.
Deferred tax assets and liabilities are offset if the entity has a legally enforceable right to set off current tax assets against current tax liabilities; and the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on the same taxable entity.