2020 Universal registration document and annual financial report - BNP PARIBAS228
4 Consolidated finanCial statements for the year ended 31 deCemBer 2020
4
Notes to the financial statements
4.k CURRENT AND DEFERRED TAXES
In millions of euros 31 December 2020 31 December 2019
Current taxes 2,016 1,857
Deferred taxes 4,543 4,956
Current and deferred tax assets 6,559 6,813
Current taxes 1,671 2,103
Deferred taxes 1,330 1,463
Current and deferred tax liabilities 3,001 3,566
Change in deferred tax by nature over the period:
In millions of euros 31 December
2019
Changes recognised in
profit or loss
Changes recognised in
equity that may be reclassified to profit or loss
Changes recognised
in equity that will not be
reclassified to profit or loss
Effects of exchange
rates, consolidation
scope and other
movements 31 December
2020
Financial instruments (1,041) 111 (208) (4) 81 (1,061)
Provisions for employee benefit obligations 871 23 (4) (18) 872
Unrealised finance lease reserve (505) (59) 8 (556)
Credit risk impairment 3,271 (73) (53) 3,145
Tax loss carryforwards 1,119 (58) (15) 1,046
Other items (222) 40 (11) (40) (233)
NET DEFERRED TAXES 3,493 (16) (219) (8) (37) 3,213
Deferred tax assets 4,956 4,543
Deferred tax liabilities (1,463) (1,330)
In order to determine the amount of the tax loss carryforwards recognised as assets, the Group conducts every year a specific review for each relevant entity based on the applicable tax regime, notably incorporating any time limit rules, and a realistic projection of their future revenue and charges in line with their business plan.
Deferred tax assets recognised on tax loss carryforwards are mainly related to BNP Paribas Fortis for EUR 648 million, with a 7-year expected recovery period (unlimited carryforward period).
Unrecognised deferred tax assets totalled EUR 1,117 million at 31 December 2020 compared with EUR 1,291 million at 31 December 2019.
