Note 17 Deferred tax
Deferred tax assets and liabilities comprise the following:
Deferred tax assets and liabilities
€ million |
2024 |
2023 |
Property, plant and equipment |
- |
41 |
Right-of-use-assets |
-39 |
-33 |
Financial lease liabilities |
34 |
33 |
Provisions, Treasury, and others |
-1 |
1 |
Carrying amount as at 31 December |
-6 |
42 |
The deferred tax liability of €6 million comprises the temporary differences between the carrying amounts of property, plant and equipment and other balance sheet items, including investments and provisions, and the corresponding valuation for tax purposes.
The deferred tax liability of €4 million in respect of property, plant and equipment is the result of differences between the carrying amounts in the financial statements and the valuation for tax purposes. Alliander became liable to pay corporate income tax on 1 January 1998. The carrying amounts of the property, plant and equipment agreed with the Dutch Tax & Customs Administration as at 1 January 1998 have depreciation periods extending ahead as far as 2030. Realisation of the temporary difference relating to these assets is therefore spread out over this period. In addition, the deferred tax relating to property, plant and equipment refers to the general overhead surcharge that has been capitalised for tax purposes, the effects of implementing IFRS in 2005, and use of the discretionary depreciation scheme for tax purposes. The remaining €2 million liability consists of the differences in the valuation of provisions and other securities, and investments for commercial purposes and for tax purposes.
As at year-end 2024, there was a total unrecognised deferred tax asset of €19 million (year-end 2023: €19 million), made up of:
tax loss carryforwards from our activities in Germany: €16 million, which have not been recognised due to the projected results for the German entities in the medium term;
an amount of €3 million relating to a Dutch subsidiary acquired in 2018.
Gross movement in deferred tax assets and liabilities
€ million |
Property, plant and equipment |
Right-of-use-assets |
Lease liabilities |
Provisions, Treasury and others |
Offsettable losses |
Total |
Carrying amount as at 1 January 2023 |
140 |
-31 |
31 |
1 |
- |
141 |
Movements 2023 |
||||||
Changed temporary differences |
-102 |
-2 |
2 |
1 |
- |
-101 |
Reclassification to assets held for sale |
3 |
- |
- |
-1 |
- |
2 |
Total |
-99 |
-2 |
2 |
- |
- |
-99 |
Carrying amount as at 31 December 2023 |
41 |
-33 |
33 |
1 |
- |
42 |
Movements 2024 |
||||||
Changed temporary differences current book year |
-8 |
-6 |
1 |
-3 |
-14 |
-30 |
Changed temporary differences previous book year |
-33 |
- |
- |
1 |
14 |
-18 |
Total |
-41 |
-6 |
1 |
-2 |
- |
-48 |
Carrying amount as at 31 December 2024 |
- |
-39 |
34 |
-1 |
- |
-6 |
The decrease of €49 million in 2024 is due to the reversal of temporary differences and the application of the discretionary depreciation scheme for tax purposes.