22. Deferred tax
|
31 December |
|
|---|---|---|
(thousands of €) |
2022 |
2021 |
Recognized deferred tax assets and liabilities |
|
|
Assets |
1,363 |
4,032 |
Liabilities |
20,148 |
- |
|
|
|
Deferred tax assets unrecognized |
460,102 |
408,892 |
|
|
|
Deferred taxes in the consolidated income statement |
1,227 |
(404) |
Tax benefit arising from previously unrecognized tax assets used to reduce deferred tax expense (+) |
1,677 |
1,411 |
Deferred tax benefit/expenses (-) relating to temporary differences |
1,899 |
(629) |
Deferred tax expenses relating to use or derecognition of previously recognized deferred tax assets |
(2,348) |
(1,185) |
Following table shows the movements in deferred tax assets and deferred tax liabilities:
(thousands of €) |
Intangible assets other than goodwill |
Retirement benefit liabilities |
Tax loss carryforward |
Other |
Total |
|---|---|---|---|---|---|
On 1 January 2021 |
|
1,440 |
2,907 |
127 |
4,475 |
|
(623) |
226 |
(7) |
(404) |
|
Charged to other comprehensive |
|
(74) |
|
|
(74) |
Translation differences |
|
33 |
|
2 |
35 |
On 31 December 2021 |
- |
776 |
3,133 |
122 |
4,032 |
Impact of acquisitions of businesses |
(23,265) |
|
|
|
(23,265) |
2,842 |
17 |
(1,797) |
165 |
1,227 |
|
Reclassifications |
275 |
|
(275) |
|
- |
Charged to other comprehensive |
|
(795) |
|
|
(795) |
Translation differences |
|
22 |
|
(6) |
16 |
On 31 December 2022 |
(20,148) |
19 |
1,061 |
281 |
(18,785) |
The consolidated tax losses, innovation income deduction, dividend received deduction and investment deduction carried forward and the deductible temporary differences on 31 December 2022 amounted in total to €1,882.5 million (2021: €1,653.7 million), €2.7 million were related to tax losses with expiry date between 2028 and 2034.
The available tax losses carried forward that can be offset against possible future taxable profits amounted to €883.6 million on 31 December 2022 (€635.6 million on 31 December 2021) and can be carried forward for an indefinite period except for an amount of €2.7 million in the United States with expiry date between 2028 and 2034. On 31 December 2022, the available tax losses carried forward in Galapagos NV (Belgium) amounted to €769.9 million (2021: €556.9 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 2022, a carried forward tax deduction amounting to €346.2 million (2021: €301.3 million) that can also be offset against possible future taxable results. In addition, Galapagos NV (Belgium) also has available investment deduction carried forward of €1 million (2021: €1 million) and dividend received deduction carried forward of €18.7 million (2021: €8.2 million) that can be offset against possible 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 recognized as at 31 December 2022, except for one subsidiary operating on a cost plus basis, for which a deferred tax asset was recognized for €1.1 million (2021: €4.0 million, for two subsidiaries).
Net deferred tax liabilities were initially calculated based on the fair value of the intangible assets identified from the acquisition of CellPoint and AboundBio, adjusted by considering the related recognizable deferred tax assets. We refer to note 26 for more information on the purchase price allocation of the business combinations.