Note 17 Deferred tax

Deferred tax assets and liabilities comprise the following:

Deferred tax assets and liabilities

The deferred tax liability of €18 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 €11 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 remainder comprises the differences between the carrying amount and the tax base of right-of-use assets and lease liabilities (€4 million negative) and provisions/investments (€2 million negative).

As at year-end 2025, there was a total unrecognised deferred tax asset of €19 million (year-end 2024: €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 relates to a Dutch subsidiary acquired in 2018.

Gross movement in deferred tax assets and liabilities

The reduction of €17 million in 2025 is made up of the reversal of €21 million in new temporary differences, including the full deductibility of IT-related intangible assets in the first year, less €4 million resulting from the sale of the Randmeren high-voltage network to TenneT.