11. Income taxes
The following table summarizes the income taxes recognized in profit or loss for the years ended 31 December 2023 and 2022.
|
Year ended 31 December |
|||
|---|---|---|---|---|
(thousands of €) |
2023 |
2022(*) |
||
Current tax |
(5,928) |
(1,738) |
||
Deferred tax |
(3,685) |
1,166 |
||
Total income taxes |
(9,613) |
(572) |
||
|
||||
Current tax, consisting of corporate income taxes, and deferred tax income/cost (–) related to subsidiaries of our continuing operations working on a cost plus basis. The increase in 2023 as compared to 2022 was primarily due to the re-assessment of net deferred tax liabilities and corporate income tax payables as a result of a one-off intercompany transaction.
Taxes recognized in profit or loss
For the purpose of the disclosure below corporate tax was calculated at 25% (2022: 25%) – which is the tax rate applied in Belgium – on the estimated assessable profit for the year. The applied tax rate for other territorial jurisdictions was the tax rate that is applicable in these respective territorial jurisdictions on the estimated taxable result of the accounting year.
|
Year ended 31 December |
|||
|---|---|---|---|---|
(thousands of €) |
2023 |
2022(*) |
||
Profit /loss (-) before taxes |
5,625 |
(70,849) |
||
Income tax debit/credit (-), calculated using the Belgian statutory tax rate on the accounting profit/loss (-) before tax (theoretical) |
1,406 |
(17,712) |
||
Tax expenses in income statement (effective) |
9,613 |
572 |
||
Difference in tax expenses/income to explain |
8,207 |
18,284 |
||
|
|
|
||
Effect of tax rates in other jurisdictions |
(94) |
(337) |
||
Effect of non-taxable income |
(6,752) |
(5,828) |
||
Effect of share-based payment expenses without tax impact |
9,157 |
15,501 |
||
Effect of expenses/income (-) not subject to tax |
(5) |
(146) |
||
Effect of non-tax-deductible expenses |
1,549 |
2,975 |
||
Effect of recognition of previously non recognized deferred tax assets |
(81) |
(1,677) |
||
Effect of tax losses (utilized) reversed |
(267) |
- |
||
Effect from under or over provisions in prior periods |
(722) |
1,101 |
||
Effect of non-recognition of deferred tax assets |
34,339 |
4,819 |
||
Effect of derecognition of previously recognized deferred tax assets |
1,062 |
1,877 |
||
Effect of use of IID |
(29,979) |
- |
||
Total explanations |
8,207 |
18,284 |
||
|
||||
Non-taxable income for the years ended 31 December 2023 and 2022 were related to non-taxable grants and tax credits.