21. Income Tax

Income tax recognized in profit or loss for the period includes actual tax charge for the given reporting period of individual companies, determined in line with the binding provisions of the Act on corporate income tax and potential adjustments of tax settlements for previous years.

The Group recognizes a deferred tax liabilities and assets arising from temporary differences between the book value of assets and liabilities and their tax value, as well as a tax loss deductible in the future. 

The deferred tax asset is recognized only if its realization is probable, i.e. if it is expected that a taxable profit sufficient to use the asset will be generated in the future. 

Income tax relating to items recognized in other comprehensive income or directly in equity, is recognized in other comprehensive income or equity, respectively.  

The deferred tax assets and deferred tax liabilities of the companies forming the Tax Capital Group in a given financial year are set off due to the fact that these companies file a joint tax return. 

The Group assesses the realisability and verifies unrecognized deferred tax assets at each balance sheet date. 

The Group does not recognize the full amount of the deferred tax asset, mainly of the companies in the Generation segment, due to the lack of forecasts justifying its feasibility.