11. Deferred income tax

The movement in deferred tax assets and liabilities is as follows:

(in millions of euros)

Net balance as at 1 January 2025

Included in income statement

Included in other comprehensive income

Net balance as at 31 December 2025

Deferred tax asset

Deferred tax liabilities

Property, plant, and equipment

287

-77

-

210

210

-

Intangible assets

28

-13

-

15

15

-

Right-of-use assets

-18

-1

-

-19

-19

-

Financial fixed assets

-3

-1

-

-4

3

7

Receivables

-

-

-

-

-

-

Provisions

-

-

-

-

-

-

Income attributable to future years

31

-18

-

13

13

-

Loans and other financial liabilities

-

-

-

-

-

-

Lease obligations

23

-3

-

20

20

-

Employee benefits

1

23

-

24

24

-

Loss compensation

73

36

-

109

109

-

Deferred tax assets (liabilities)

422

-54

-

368

375

7

Offsetting of receivables and liabilities

-

-7

-7

Deferred tax assets (liabilities) after offsetting

-

368

-

(in millions of euros)

Net balance as at 1 January 2024

Included in income statement

Included in other comprehensive income

Net balance as at 31 December 2024

Deferred tax asset

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

-

Financial fixed assets

-

-3

-

-3

4

7

Receivables

-2

2

-

-

-

-

Provisions

-

-

-

-

-

-

Income attributable to future years

10

21

-

31

31

-

Loans and other financial liabilities

-

-

-

-

-

-

Lease obligations

31

-8

-

23

23

-

Employee benefits

5

-4

-

1

1

-

Loss compensation

74

-1

-

73

73

-

Deferred tax assets (liabilities)

428

-6

-

422

429

7

Offsetting of receivables and liabilities

-7

-7

Deferred tax assets (liabilities) after offsetting

422

-

The projected profits for the years up to and including 2033 have been reviewed. This has led to an upward adjustment of the tax asset for temporary differences (€22 million) (2024: write-down of €1 million) and an upward adjustment of the tax asset for loss compensation in the amount of €36 million (2024: write-down of €36 million). For further information on the tax burden, see note 10.

As at 31 December 2025, and 2024, there is no immediate income tax liability.

Unrecognised deferred tax assets

Deferred tax assets for temporary differences were not recognised for a gross amount of €459 million. The unrecognised temporary differences are mainly due to tax depreciation restrictions on real estate.

Accounting policy

Deferred tax assets and liabilities are recognised for temporary differences between the carrying amounts of assets and liabilities in the financial statements and the tax bases of those items. The calculation is based on the tax rates that are expected to apply when the temporary differences are reversed, based on tax rates that have been enacted or substantively enacted by the reporting date.

Deferred tax assets, including those arising from loss carryforwards, are recognised to the extent that it is probable that sufficient taxable profit will be available against which the losses can be utilised and the carryforwards can be utilised.

Deferred tax assets and liabilities are offset if the entity has a legally enforceable right to offset current tax assets against current tax liabilities; and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on the same taxable entity.

The mandatory exception in IAS 12 regarding the treatment of deferred tax assets and liabilities related to Pillar 2 income taxes has been applied.

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