Deferred tax assets and liabilities

Deferred tax assets and liabilities are as follows.

Deferred tax assets and liabilities relate mainly to property, plant and equipment and cash flow hedges taken through group equity.

Movements in deferred taxes during 2021 were as follows:

The major portion of the deferred tax on property, plant and equipment relates to the difference between the book value and tax bases in the valuation of the networks. The deferred tax liability relating to property, plant and equipment was caused mainly by the difference between the book values and tax bases in the valuation of the networks at the time of the introduction of corporate income tax for Stedin Group, accelerated depreciation for tax purposes applied in the past, the revaluation of the networks and the valuation of the acquired networks as part of the accounting for the acquisition of DNWG.

On the 2021 Budget Day, the government announced an increase in the corporate income tax rate to 25.8% as from 2022 Calculations performed in 2020 still applied rates of 25% as from 2021; these were the future statutory rates in 2020 but were changed to 25.8% in 2021. This means that the deferred tax assets and liabilities are settled and measured at the rate of 25.8%.

Movements in deferred taxes during 2020 are as follows:

Expiration periods for deductible temporary differences as at 31 December 2020 are as follows: