21. Deferred tax
|
31 December |
|
|---|---|---|
(thousands of €) |
2019 |
2018 |
Recognized deferred tax assets and liabilities |
|
|
Assets |
4,205 |
2,514 |
Liabilities |
– |
– |
|
|
|
Deferred tax assets unrecognized |
289,833 |
223,377 |
|
|
|
Deferred taxes in the consolidated income statement |
1,158 |
535 |
Tax benefit arising from previously unrecognized tax assets used to reduce deferred tax expense (+) |
1,537 |
1,973 |
Deferred tax expenses relating to use or derecognition of previously recognized deferred tax assets |
(379) |
(1,438) |
The consolidated tax losses, innovation income deduction and investment deduction carried forward and the deductible temporary differences at 31 December 2019 amounted in total to €1,179.0 million, €4.2 million were related to unrecognized tax losses with expiry date between 2020 and 2028.
The available statutory tax losses carried forward that can be offset against future statutory taxable profits amounted to €374.1 million on 31 December 2019. These statutory tax losses can be compensated with future statutory profits for an indefinite period except for an amount of €7.2 million in Croatia and the United States with expiry date between 2020 and 2028. On 31 December 2019, the available tax losses carried forward in Galapagos NV (Belgium) amounted to €307.7 million. In addition to the latter, Galapagos NV (Belgium) also benefits from the Belgian innovation income deduction regime which led to report, on 31 December 2019, a carried forward tax deduction amounting to €224.7 million that can also be offset against future statutory taxable results. In addition, Galapagos NV (Belgium) also has available investment deduction carried forward of €1 million (2018: €1 million) that can be offset against future taxable profits. There is no limit in time for the innovation income deduction and investment deduction carried forward.
With the exception of 2019, we have a history of losses. Excluding the impact of possible sales related revenues for filgotinib (which is subject to regulatory approval), we forecast to continue incurring taxable losses in the foreseeable future as we continue to invest in clinical and preclinical development programs and discovery platforms. Consequently, no deferred tax asset was set up as at 31 December 2019, except for two subsidiaries operating on a cost plus basis and for our fee-for-service business, for which deferred tax assets were recognized for €4.2 million (2018: €2.5 million).