11. Deferred income tax
The changes in deferred tax assets and liabilities are as follows:
|
(in millions of euros) |
Net balance as at 1 January 2024 |
Recognised in income statement |
Recognised in other comprehensive income |
Net positions as at 31 December 2024 |
Deferred tax assets |
Deferred tax liabilities |
|
Property, plant and equipment |
295 |
-8 |
287 |
287 |
- |
|
|
Intangible assets |
42 |
-14 |
28 |
28 |
- |
|
|
Right-of-use assets |
-27 |
9 |
-18 |
-18 |
- |
|
|
Non-current financial assets |
- |
-3 |
-3 |
4 |
7 |
|
|
Receivables |
-2 |
2 |
- |
- |
- |
|
|
Provisions |
- |
- |
- |
- |
- |
|
|
Deferred income |
10 |
21 |
31 |
31 |
- |
|
|
Loans and other financial liabilities |
- |
- |
- |
- |
- |
|
|
Lease liabilities |
31 |
-8 |
23 |
23 |
- |
|
|
Other items |
5 |
-4 |
1 |
1 |
- |
|
|
Loss compensation |
74 |
-1 |
73 |
73 |
- |
|
|
Deferred tax assets (liabilities) |
428 |
-6 |
- |
422 |
429 |
7 |
|
Netting of receivables and liabilities |
-7 |
-7 |
||||
|
Deferred tax assets (liabilities) after netting |
422 |
- |
||||
|
(in millions of euros) |
Net balance as at 1 January 2023 |
Recognised in income statement |
Recognised in other comprehensive income |
Net positions as at 31 December 2023 |
Deferred tax assets |
Deferred tax liabilities |
|
Property, plant and equipment |
242 |
53 |
- |
295 |
295 |
- |
|
Intangible assets |
29 |
13 |
- |
42 |
42 |
- |
|
Right-of-use assets |
-37 |
10 |
- |
-27 |
-27 |
- |
|
Non-current financial assets |
- |
- |
- |
- |
7 |
7 |
|
Receivables |
-3 |
1 |
- |
-2 |
-2 |
- |
|
Provisions |
- |
- |
- |
- |
- |
- |
|
Deferred income |
10 |
- |
- |
10 |
10 |
- |
|
Loans and other financial liabilities |
- |
- |
- |
- |
- |
- |
|
Lease liabilities |
23 |
8 |
- |
31 |
31 |
- |
|
Other items |
4 |
- |
1 |
5 |
5 |
- |
|
Loss compensation |
48 |
26 |
- |
74 |
74 |
- |
|
Deferred tax assets (liabilities) |
316 |
111 |
1 |
428 |
435 |
7 |
|
Netting of receivables and liabilities |
-7 |
-7 |
||||
|
Deferred tax assets (liabilities) after netting |
428 |
- |
A review of projected profits over the years up to 2033 has taken place. This has led to a write-down of the tax asset temporary differences (€1 million) (2023: write-down of €9 million) and a write-down of the tax asset losses offset against tax in the amount of €36 million (2023: nil). For an explanation of the tax rate, see note 10.
Unrecognised deferred tax assets
A gross sum of €543 million in deferred tax assets for temporary differences and a gross sum of €140 million in deferred tax assets for loss compensation were not recognised because it is unlikely that future taxable profits will be available against which the Group can utilise the benefits. The unrecognised temporary differences were mainly due to tax depreciation restriction of the real estate.
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.
The IAS 12 mandatory exception on accounting for deferred tax assets and liabilities related to Pillar 2 income taxes has been used.