Deferred tax liabilities arise from temporary differences between the measurement of assets and liabilities for financial reporting purposes and the measurement for tax purposes. In particular, deferred tax liabilities mainly refer to temporary differences in the measurement of property, plant and equipment in Germany. In addition, there are a number of other differences in the Netherlands (for entities that do not form part of the fiscal unity) and in Germany that result in deferred tax liabilities and assets. These deferred tax liabilities and assets satisfy the conditions for setting off tax items.

The deferred tax liability has a term until 2070 and is strictly long term (same at year-end 2024). In Germany, a final decision was made in 2025 to gradually reduce the corporate income tax rate (the Körperschaftsteuersatz). Currently standing at 15%, the German corporate income rate will be lowered by 1% every year, starting from the 2028 financial year, until it reaches 10% in 2032. This rate change reduced our deferred tax liabilities.