21. Deferred tax
|
31 December |
|
(thousands of €) |
2020 |
2019 |
Recognized deferred tax assets and liabilities |
|
|
Assets |
4,475 |
4,205 |
Liabilities |
- |
- |
|
|
|
Deferred tax assets unrecognized |
365,639 |
289,833 |
|
|
|
Deferred taxes in the consolidated income statement |
(157) |
1,537 |
Tax benefit arising from previously unrecognized tax assets used to reduce deferred tax expense (+) |
581 |
1,537 |
Deferred tax expenses relating to temporary differences |
(44) |
- |
Deferred tax expenses relating to use or derecognition of previously recognized deferred tax assets |
(695) |
- |
The consolidated tax losses, innovation income deduction, dividend received deduction and investment deduction carried forward and the deductible temporary differences on 31 December 2020 amounted in total to €1,485.8 million (2019: €1,179.0 million), €2.7 million were related to tax losses with expiry date between 2026 and 2034.
The available statutory tax losses carried forward that can be offset against future statutory taxable profits amounted to €478.6 million on 31 December 2020 (€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 €2.7 million in the United States and the Netherlands with expiry date between 2026 and 2034. On 31 December 2020, the available tax losses carried forward in Galapagos NV (Belgium) amounted to €416.6 million (2019: €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 2020, a carried forward tax deduction amounting to €247.2 million (2019: €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 (2019: €1 million) and dividend received deduction carried forward of €8.4 million (2019: nil) that can be offset against future taxable profits. There is no limit in time for the innovation income deduction, the dividend received deduction and investment deduction carried forward.
With the exception of 2019, we have a history of losses. 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 2020, except for four subsidiaries operating on a cost plus basis , for which deferred tax assets were recognized for €4.5 million (2019: €4.2 million).