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Notes to the Consolidated Financial Statements
12.2 Deferred tax assets and liabilities
mHeineken N.V. Report of the Report of the Financial Sustainability Other
Annual Report 2020 Introduction Executive Board Supervisory Board Statements Review Information
Recognised deferred tax assets and liabilities
Deferred tax assets and liabilities are attributable to the following items:
Of the total net deferred tax assets of €779 million as at 31 December 2020 (2019: €647 million), €528 million
(2019: €101 million) is recognised in respect of subsidiaries in various countries where there have been losses
in the current or preceding period. Management's projections support the assumption that it is probable
that the results of future operations will generate sufficient taxable income to utilise these deferred tax
assets. This judgement is performed annually and based on budgets and business plans for the coming years,
including planned commercial initiatives and the impact of COVID-19.
No deferred tax liability has been recognised in respect of undistributed earnings of subsidiaries, joint
ventures and associates, with an impact of €201 million (2019: €141 million). This is because HEINEKEN is
able to control the timing of the reversal of the temporary differences, and it is probable that such differences
will not reverse in the foreseeable future.
Tax losses carried forward
HEINEKEN has tax losses carried forward of €3,663 million as at 31 December 2020 (2019: €4,024 million), out
of which €409 million (2019: €382 million) expires in the following five years, €490 million (2019: €191 million)
will expire after five years and €2,764 million (2019: €3,451 million) can be carried forward indefinitely.
Deferred tax assets have not been recognised in respect of tax losses carried forward of €1,858 million
(2019: €2,163 million) as it is not probable that taxable profit will be available to offset these losses. Out of
this €1,858 million (2019: €2,163 million), €256 million (2019: €173 million) expires in the following five years,
€233 million (2019: €16 million) will expire after five years and €1,369 million (2019: €1,974 million) can be
carried forward indefinitely.
Movement in deferred tax balances during the year
In millions of
1 January
2020
Changes in
consolidation
Effect of
movements
in foreign
exchange
Recognised
in income
Recognised
in equity
Transfers
31 December
2020
P,P&E
(705)
(1)
74
122
(9)
(519)
Intangible assets
(1,329)
2
128
195
(1,004)
Investments
36
(7)
1
30
Inventories
35
19
54
Borrowings
308
1
(1)
(36)
(3)
9
278
Post-retirement
274
(10)
10
274
obligations
Provisions
274
6
(58)
23
245
Other items
(78)
4
87
(12)
1
Tax losses carried
410
1
(37)
47
421
forward
Net tax assets/
(liabilities)
(775)
9
93
458
(5)
(220)
Assets Liabilities Net
In millions of
2020
2019
2020
2019
2020
2019
P,P&E
104
98
(623)
(803)
(519)
(705)
Intangible assets
45
29
(1,049)
(1,358)
(1,004)
(1,329)
Investments
35
41
(5)
(5)
30
36
Inventories
57
47
(3)
(12)
54
35
Borrowings
281
308
(3)
278
308
Post-retirement obligations
279
278
(5)
(4)
274
274
Provisions
258
302
(13)
(28)
245
274
Other items
182
138
(181)
(216)
1
(78)
Tax losses carried forward
421
410
421
410
Tax assets/(liabilities)
1,662
1,651
(1,882)
(2,426)
(220)
(775)
Set-off of tax
(883)
(1,004)
883
1,004
Net tax assets/(liabilities)
779
647
(999)
(1,422)
(220)
(775)
