17. 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 carry forward of losses due to accelerated tax depreciation in 2023. Stedin considers it likely that there will be sufficient future taxable profits to utilise the available loss carried forward.

Changes in deferred taxes during 2023 were as follows:

The major portion of the deferred tax on property, plant and equipment relates to the regulated networks. The deferred tax liability of property, plant and equipment is mainly due to:

• the difference between the commercial valuation and valuation for tax purposes of the regulated networks at the time of the introduction of corporate income tax for Stedin Group;

• accelerated tax depreciation in 2023 and applied in the past; and

• the valuation of the acquired regulated networks as part of the recognition of the acquisition of DNWG.
  

Changes in deferred taxes during 2022 were as follows:

Expiration periods for deductible temporary differences as at 31 December 2023 are as follows:

On 31 December 2023, the Minimum Tax Act 2024 (‘Pillar 2’) came into force. This Act will apply for the first time from the 2024 financial year. Stedin operates only in the Netherlands and its effective tax rate is well above 15%. The Act is therefore not expected to have any impact on Stedin Group’s financial statements.