6.15 Deferred tax assets and liabilities

The net amount of the deferred tax assets and liabilities relating to temporary differences between the carrying amounts for tax purposes and for reporting purposes of items in the statement of financial position, together with recognised tax-loss carryforwards, can be broken down as follows:

Receivables

Payables

Net amount

31 December

31 December

31 December

2022

2021

2022

2021

2022

2021

Property, plant and equipment

2,767

2,979

-

-

2,767

2,979

Right-of-use assets

18,831

19,607

18,118

18,998

713

609

Intangible assets

-

-

756

1,328

-756

-1,328

Employee benefits

4,780

5,354

-

-

4,780

5,354

Provisions

0

0

-

-

0

0

Recognised tax-loss carryforwards

20,943

25,509

-

-

20,943

25,509

Deferred tax assets and liabilities

47,321

53,449

18,874

20,326

28,447

33,123

Set-off of deferred tax assets and liabilities

-18,874

-20,326

-18,874

-20,326

-

-

Net deferred tax assets and liabilities

28,447

33,123

0

0

28,447

33,123

The movement in the statement of financial position of the deferred tax assets and liabilities in 2022 breaks down as follows:

x € 1,000

Net amount at 31 December 2021

Recognised in income tax

Recognised in other comprehensive income

Other movements

Net amount at 31 December 2022

Property, plant and equipment

2,979

-212

-

-

2,767

Right-of-use assets/lease liabilities

609

104

-

-

713

Intangible assets

-1,328

985

0

-413

-756

Employee benefits

5,354

-587

13

0

4,780

Other items

0

0

-

-

0

Recognised tax-loss carryforwards

25,509

-4,759

0

193

20,943

Total

33,123

-4,469

13

-220

28,447

The movement in the statement of financial position of the deferred tax assets and liabilities in 2021 breaks down as follows:

x € 1,000

Net amount at 31 December 2020

Recognised in income tax

Recognised in other comprehensive income

Net amount at 31 December 2021

Property, plant and equipment

493

2,486

-

2,979

Right-of-use assets/lease liabilities

615

-6

-

609

Intangible assets

-1,543

215

-

-1,328

Employee benefits

3,377

-915

2,892

5,354

Other items

45

-45

-

0

Recognised tax-loss carryforwards

31,718

-6,209

-

25,509

Total

34,705

-4,474

2,892

33,123

6.15a Measurement of deferred tax assets

At year-end 2022, the recognised loss carryforward was €20.9 million (2021: €26 million), including the remaining, previously unrecognised, tax group losses which were recognised in 2022. The recognised loss carryforwards relate almost entirely to the Dutch tax group. The utilisation of tax loss carryforwards changed on 1 January 2022. Under the new loss relief rules, it has only been possible from the financial year 2022 to utilise 50% of profits above €1 million against past losses. Against this, from the financial year 2022 it will be possible under the new loss relief rules to carry forward all losses against future profits indefinitely.

A deferred tax asset is recognised to the extent that it is probable, based on forecasts, that sufficient future taxable profits will be available that can be utilised towards realising the deferred asset. Most activities are performing as planned. The forecasts are based on the order book, the 2023 business plan, and the long-term forecast. These also underlie the measurement of the recoverable amount of goodwill (impairment tests). For the long-term forecast, the average EBIT margin of the Dutch tax group is assumed to slightly grow. A factor inherent in the measurement of the deferred tax assets is that the utilisation of losses depends on the realisation of the 2023 business plan and the long-term forecasts, which are the Group’s best estimates. Based on the projected results for 2023 to 2025 and the current tax rate of 25.8%, there will be sufficient taxable profits over the next few years to enable the tax asset recognised as at 31 December 2022 to be realised.

The movement in the deferred tax assets was as follows:

x € 1,000

2022

2021

Balance at 1 January

25,509

31,718

Effect of changes in the tax rate

0

791

Prior-year adjustment

193

1,434

Charge for the financial year

-9,341

-13,012

Recognition of previously unrecognised losses

4,582

11,421

Impact of new loss relief rules

0

-6,843

Balance at 31 December

20,943

25,509

6.15b Measurement of deferred tax liabilities

For determining the amount of the deferred tax liabilities, the value for tax purposes of the construction work in progress in the Netherlands (including residential building projects) is treated as being equal to the value under IFRS.

Deferred tax assets or liabilities are recognised for any temporary differences originating at subsidiaries, joint operations or joint ventures. No deferred tax assets or liabilities have been recognised for temporary differences arising from investments in associates in view of their relative insignificance.

The majority of the deferred tax liabilities have a term of more than one year.

Tax losses not recognised in the statement of financial position

At year-end 2022, the tax losses not recognised in the statement of financial position amounted to €43.4 million (2021: €42.5 million). These relate primarily to Dynniq Energy BV, which was acquired in 2022, (2022: €0.9 million) and three foreign subsidiaries (in Belgium and Germany) that conduct no operations (2022: €42.5 million). These unrecognised tax losses can be carried forward indefinitely and do not expire.

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