25. Deferred taxes

Deferred corporate income tax assets and liabilities are created to reflect temporary differences between the carrying value of assets and liabilities in these financial statements and the value in the corporate income tax return. Deferred taxes are recognised at nominal value. The calculation is based on the tax rates expected to apply when the temporary differences are realised. The tax rates in question apply on the reporting date or have already been materially decided on the balance sheet date.

A deferred corporate income tax asset is recognised on the balance sheet if and to the extent that sufficient taxable profits will likely be available. Offsetting deferred tax assets and liabilities only takes place if a formal right to offset exists and the company intends to settle the deferred taxes simultaneously. The deferred tax liability is mainly of a long-term nature.

It is unclear whether the Pillar Two model rules will create additional temporary differences, whether it is necessary to recalculate the deferred taxes for the rules of the Pillar Two model, and which tax rate must be used to calculate deferred taxes. Therefore, IASB added a temporary obligatory exemption to IAS 12. Due to this exemption, no deferred tax assets or liabilities in connection with corporate income tax based on Pillar Two model rules have been taken into account or explained in the notes.

The deferred corporate income tax liability is mainly formed due to a lower tax valuation of property, plant and equipment. The differences in valuation originated from the start of the tax obligation (1998), a commercial revaluation (2009), and the possibility of applying the random depreciation method for tax purposes in the past and in the year 2023. In addition, deferred tax liabilities were recognised for the impact of IFRS 16 (leases).

The increase in the deferred tax liability of €42 million compared to 2023 is mainly due to the recognition of discretionary depreciation in the 2023 corporate income tax return and the use of loss compensation in calculating the corporate income tax payable in 2024. In addition, the tax depreciation in 2024 exceeds the reported depreciation.

The deferred tax liability can be specified as follows:

Tax deductible losses from 2013 onwards can statutorily be carried forward indefinitely. At year-end 2024, the carryforward pre-consolidation losses of Mijnwater Warmte Infra B.V. are no longer recognised.