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 determined as of the balance sheet date. Due to the mandatory temporary exemption added to IAS 12, no deferred tax assets or liabilities relating to income tax under the Pillar Two model rules have been recognised or disclosed.

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 primarily long-term.

The deferred corporate income tax liability mainly arises from 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, which was facilitated in the past. In addition, deferred tax liabilities were recognised for the impact of IFRS 16 (leases).

The deferred tax liability can be specified as follows:

The €1 million decrease in deferred tax liabilities compared to 2024 is mainly due to the processing of the 2024 corporate income tax return (liability + €4 million) and lower tax depreciation on property, plant, and equipment in the 2025 financial year (liability - €5 million). The lower tax depreciation in 2025 was due, among other things, to the partial reversal of discretionary depreciation recorded in 2023. One of the conditions for the 2023 discretionary depreciation was that the assets had to be put into use before 2026. It appears that Enexis did not meet this condition in all cases in 2025. When submitting the 2025 corporate income tax return, the extent to which it is plausible that commissioning has been delayed due to special circumstances will be investigated.

In 2025, the deferred tax liability decreased. This decrease is expected to continue in the coming years due to the elimination of part of the tax depreciation charge. Specifically, this concerns the tax depreciation charge that started at the beginning of the tax liability. This reduction will result in higher outgoing cash flows for corporation tax.

Tax-deductible losses from 2013 onwards can statutorily be carried forward indefinitely. At the end of 2025, the carry-forward losses of Mijnwater Warmte Infra B.V. amounted to €8 million. These losses have not been valued due to uncertainty regarding the development of results at the individual level of Mijnwater Warmte Infra B.V.