3.8 Deferred income tax assets and liabilities
Accounting policies
Deferred tax assets and liabilities arising from temporary differences between the carrying amounts of assets and liabilities and the tax base of assets and liabilities are calculated using the substantively enacted tax rates expected to apply when they are realised or settled. Deferred tax assets are recognised if it is probable that they will be realised. At the end of each reporting period the amounts of deferred tax assets and the amounts of unrecognised deferred tax assets are reassessed. Deferred tax assets and liabilities within the same tax group, where a legally enforceable right to offset exists, are presented net in the balance sheet.
The following table shows the movements in deferred taxes in 2023:
PostNL Statement of changes deferred taxes in € million
2023
| Net balance 1 January 2023 | Changes via income statement | Changes via OCI | Other changes | Net balance 31 December 2023 | Assets | Liabilities | |
|---|---|---|---|---|---|---|---|
| Provisions | 7 | 2 | 8 | 9 | 0 | ||
| Intangible assets | (45) | (6) | (50) | 3 | 53 | ||
| Property, plant and equipment | (46) | 3 | (42) | 1 | 44 | ||
| Leases | 8 | (1) | 7 | 74 | 66 | ||
| Losses carried forward | 7 | (2) | 5 | 5 | 0 | ||
| Other | 36 | 0 | 2 | (1) | 39 | 39 | 0 |
| Deferred tax assets/liabilities | (32) | (4) | 2 | (1) | (34) | 130 | 163 |
| Offsetting | (124) | (124) | |||||
| Net deferred taxes | (32) | (4) | 2 | (1) | (34) | 6 | 40 |
Of the deferred tax assets at 31 December 2023, before offsetting, €58 million (2022: €57 million) is to be recovered within 12 months and €72 million (2022: €77 million) after 12 months. Of the deferred tax liabilities at 31 December 2023, before offsetting, an amount of €34 million (2022: €35 million) is to be settled within 12 months and an amount of €129 million (2022: €131 million) after 12 months.
The changes via other comprehensive income of €2 million mainly relate to taxes on OCI from cash flow hedges.
The other changes of €(1) million (2022: €3 million) represent an adjustment of the Dutch deferred tax asset position in connection with the anticipated liquidation of the former Nexive entities.
The total accumulated losses available for carry forward at 31 December 2023 amounted to €107 million (2022: €110 million). With these losses carried forward, future tax benefits of €28 million could be recognised (2022: €29 million). Tax deductible losses give rise to deferred tax assets at the statutory tax rate in the relevant country. Deferred tax assets are recognised if it is probable that they will be realised. The probability of the realisation is impacted by uncertainties regarding the realisation of such benefits, for example as a result of the expiration of tax losses carried forward and projected future taxable income.
As a result, PostNL has not recognised €23 million (2022: €21 million) of the potential future tax benefits and has recorded deferred tax assets of €5 million at 31 December 2023 (2022: €7 million).
The expiration of total accumulated losses is as follows:
- 2024: €3 million
- 2025: €2 million
- 2026: €0 million
- 2027: €1 million
- 2028 and thereafter: €5 million, and
- Indefinite: €96 million.
The following table shows the accumulated losses and tax credits per jurisdiction as well as the corresponding gross deferred tax assets.
PostNL Statement of deferred tax assets per jurisdiction in € million
2023
| Country | Losses carry forward | Tax credits and other | Losses carry forward Gross DTA | Tax credits and other Gross DTA |
|---|---|---|---|---|
| Netherlands | 24 | 0 | 6 | 0 |
| Belgium | 33 | 0 | 8 | 0 |
| France | 14 | 0 | 4 | 0 |
| Germany | 25 | 0 | 8 | 0 |
| Italy | 0 | 0 | 0 | 0 |
| Great Britain | 1 | 0 | 0 | 0 |
| Switzerland | 3 | 0 | 1 | 0 |
| Spain | 1 | 0 | 0 | 0 |
| Hungary | 0 | 0 | 0 | 0 |
| Czech Republic | 1 | 0 | 0 | 0 |
| Poland | 0 | 0 | 0 | 0 |
| Russian Federation | 0 | 0 | 0 | 0 |
| United States | 0 | 0 | 0 | 0 |
| Canada | 5 | 0 | 1 | 0 |
| Hong Kong | 0 | 0 | 0 | 0 |
| Singapore | 0 | 0 | 0 | 0 |
| Total | 107 | 0 | 28 | 0 |
The table below shows the movements in deferred taxes in 2022:
PostNL Statement of changes deferred taxes in € million
2022
| Net balance 1 January 2022 | Changes via income statement | Changes via OCI | Other changes | Net balance 31 December 2022 | Assets | Liabilities | |
|---|---|---|---|---|---|---|---|
| Provisions | 4 | 377 | (374) | 7 | 7 | - | |
| Intangible assets | (35) | (9) | (45) | 4 | 48 | ||
| Property, plant and equipment | (48) | 2 | (46) | 3 | 49 | ||
| Leases | 9 | (1) | 8 | 75 | 67 | ||
| Losses carried forward | 10 | (3) | 7 | 7 | 0 | ||
| Other | 34 | (0) | (1) | 3 | 36 | 38 | 1 |
| Deferred tax assets/liabilities | (26) | 365 | (375) | 3 | (32) | 134 | 166 |
| Offsetting | (125) | (125) | |||||
| Net deferred taxes | (26) | 365 | (375) | 3 | (32) | 9 | 40 |