11. Tax assets and tax liabilities

11. Tax assets and tax liabilities

Non-current tax assets

To evaluate the deferred tax position, which includes the intercompany non-current tax receivable, an analysis is made of the expected future taxable profits as has been used for the impairment assessment. Additionally, in accordance with the probability criteria of IAS12, an uncertainty factor is applied to the forecast used. With this adjustment, the outcome of the analysis is considered to be sufficiently probable for the purpose of recognition of the deferred tax position.

Although measures were taken to apply sufficient conservatism in the analysis, changes to any of the key assumptions, such as lower than expected government support or significant delays or restrictions in environmental permitting could have an adverse effect on future valuations of the deferred tax position.

The intercompany non-current tax receivable reflects the deferred tax asset position of the Company related to the loss carry forward under Dutch income tax. Following the evaluation of future taxable profits, the value of the non-current tax receivable (intercompany) has increased to €169 million as at 31 March 2026 (2025: €154 million). The carry forward losses have no expiry date and the carrying value reflects approximately 13% of the nominal value of available tax losses.

TSN has incurred losses in recent periods; however, deferred tax assets have been recognised to the extent that it is considered probable that future taxable profits will be available. This assessment is based on Board‑approved forecasts and reflects expected improvements in operating performance driven by cost optimisation following the executed reorganisation and the on-going transformation project, as well as targeted portfolio actions, such as the acquisition of the power plants in January 2026. External factors such as the implementation of CBAM and EU import quotas are expected to support market conditions and consequently financial performance of the Company. The recoverability of these assets remains sensitive to assumptions regarding market conditions, production levels and timing of profitability.

The following are the major deferred tax assets and liabilities recognised by the Group, and the movements thereon, during the current and prior period. 

Following the evaluation of future taxable profits, net deferred tax assets of €62 million (2025: €84 million) have been recognised at 31 March 2026.

Of the deferred tax asset of €62 million as at 31 March 2026 (2025: €84 million), €8 million is expected to be utilised within the next 12 months (2025: €2 million).