Deferred tax

12 Months Ended

Dec. 31, 2023

Text block [abstract]

Deferred tax

34 Deferred tax

Deferred tax	2023		2022
Deferred tax assets	2,350		2,433
Deferred tax liabilities	(57	)	(30	)
On December 31	2,293		2,403

Deferred tax assets comprise temporary differences on:	2023		2022
Real estate	(2	)	(15	)
Financial assets	803		1,569
Insurance and investment contracts	(599	)	(1,416	)
Deferred expenses, VOBA and other intangible assets	539		573
Defined benefit plans	214		196
Tax losses and credits carried forward	1,112		1,287
Other	283		239
On December 31	2,350		2,433

Deferred tax liabilities comprise temporary differences on:	2023		2022
Financial assets	(6	)	(6	)
Insurance and investment contracts	62		33
Deferred expenses, VOBA and other intangible assets	2		-
Other	(1	)	3
On December 31	57		30

 

  290 | Annual Report on Form 20-F 2023

 

The following table provides a movement schedule of net deferred tax broken-down by those items for which a deferred tax asset or liability has been recognized.

	Real estate		Financial assets		Insurance and investment contracts		Deferred expenses, VOBA and other intangible assets		Defined benefit plans		Tax losses and credits carried forward		Other		Total
On January 1, 2023	15		(1,574	)	1,449		(573	)	(196	)	(1,287	)	(235	)	(2,403	)
Charged to income statement	(12	)	170		(479	)	12		6		49		51		(204	)
Charged to OCI	-		436		(271	)	-		(31	)	-		-		134
Net exchange differences	-		38		(32	)	19		7		26		18		76
Disposal of a business	-		2		(4	)	-		-		(8	)	2		(8	)
Transfers to disposal groups	-		-		-		-		-		(1	)	1		-
Transfer to/from other headings	-		118		-		-		-		-		(118	)	-
Transfer to/from current income tax	-		-		-		-		-		109		-		109
Other	-		-		(1	)	5		-		(1	)	(2	)	2
On December 31, 2023	2		(809	)	661		(537	)	(214	)	(1,112	)	(284	)	(2,293	)
On January 1, 2022	776		3,336		(4,452	)	(448	)	(154	)	(988	)	(45	)	(1,974	)
Charged to income statement	(75	)	(2,928	)	3,380		(217	)	(191	)	180		(105	)	45
Charged to OCI	-		(2,770	)	2,256		-		252		-		(56	)	(319	)
Net exchange differences	1		139		(163	)	(28	)	(12	)	(24	)	(22	)	(109	)
Disposal of a business	(1	)	1		(2	)	-		-		-		(3	)	(5	)
Transfers to disposal groups	(685	)	841		306		(1	)	(94	)	(454	)	26		(61	)
Transfer to/from other headings	-		(194	)	122		121		3		(27	)	(26	)	(1	)
Transfer to/from current income tax	-		-		-		-		-		25		-		25
Other	-		-		-		-		-		-		(4	)	(4	)
On December 31, 2022	15		(1,574	)	1,449		(573	)	(196	)	(1,287	)	(235	)	(2,403	)

Transfer to/from current income tax relates to the deferred tax asset for the loss carry forward position of the Dutch fiscal unity.

Deferred tax assets are recognized for tax losses and credits carried forward to the extent that the realization of the related tax benefit through future taxable profits is probable. For an amount of gross EUR 2,564 million; an amount of tax EUR 573 million related to tax losses carried forward (2022: gross EUR 2,858 million; tax EUR 635 million) and an amount of tax EUR 583 million related to tax credits carried forward (2022: tax EUR 595 million) the realization of the deferred tax asset is dependent on the projection of future taxable profits.

For the following amounts, arranged by loss carry forward periods, the deferred tax asset is not recognized:

	Gross amounts 1)		Not recognized deferred tax  assets
	2023	2022	2023		2022
< 5 years	28	58	13		16
≥ 5 – 10 years	1	7	(0	)	2
≥ 10 – 15 years	-	-	65		59
≥ 15 – 20 years	-	-	-		-
Indefinitely	939	651	231		169
On December 31	969	716	308		246

1 The gross value of state tax loss carry forward is not summarized in the disclosure, due to the fact that the United States files in different state jurisdictions with various applicable tax rates and apportionment rules

 

 

Deferred corporate income tax assets in respect of deductible temporary differences are recognized to the extent that the realization of the related tax benefit through future taxable profits is probable. For the following amounts relating to deductible temporary differences the realization of the deferred corporate income tax asset is dependent on future taxable profits in excess of the profits arising from the reversal of existing taxable temporary differences.

	Gross amounts				Deferred tax assets
	2023		2022		2023		2022
Deferred corporate income tax asset dependent on retaining bond and similar investments until the earlier of market recovery or maturity	4,729		6,166		993		1,295
Deferred corporate income tax asset dependent on future taxable profits	1,717		27		362		7
On December 31	6,446		6,193		1,355		1,302

In 2022 Aegon did not recognize deferred tax assets in respect of deductible temporary differences relating to Financial assets and Other items for the amount. The amount of gross EUR 29 million; tax EUR 5 million is no longer accounted for since this relates to the divested business of Poland.

The non-recognized deferred tax liabilities in 2022 for withholding tax and other taxes payable on the unremitted earnings of certain subsidiaries totaled gross EUR 1,758 million; tax EUR 454 million was settled in 2023.

Deferred taxes are non-current by nature and the majority of the deferred tax assets and liabilities will therefore reverse after more than one year after the balance sheet date.