13.14.2. Deferred tax - Orlen Raport

13.14.2 Deferred tax

	31/12/2021	Deferred tax recognised in profit or loss	Deferred tax recognised in other comprehensive income	Exchange differences on translating foreign operations	Combination of units*	Other**	31/12/2022
Deferred tax assets
Temporary differences related to non-current assets	374	1,074	1	(7)	360	-	1,802
Provisions and accruals	1,018	289	(31)	12	1,593	-	2,881
Tax losses	659	843	-	23	156	-	1,681
Valuation of derivative financial instruments	167	(552)	(1,183)	(1)	4,614	-	3,045
Lease liabilities	1,040	74	-	10	290	-	1,414
Recognised income tax relief related to running a business in a special investment zone	105	42	-	6	-	(50)	103
Other	552	(1,063)	1	(67)	2,052	-	1,475
	3,915	707	(1,212)	(24)	9,065	(50)	12,401
Deferred tax liabilities
Temporary differences related to non-current assets	4,552	216	1	(185)	9,266	-	13,850
Odpisy aktualizujące wartość aktywów	-	(698)	1	1	716	-	20
Unrealized foreign exchange differences	238	128	-	1	1	-	368
Valuation of derivative financial instruments	214	(871)	182	(1)	885	-	409
Other	253	557	(1)	(19)	89	-	879
	5,257	(668)	183	(203)	10,957	-	15,526
	(1,342)	1,375	(1,395)	179	(1,892)	(50)	(3,125)

	31/12/2020	Deferred tax recognised in profit or loss	Deferred tax recognised in other comprehensive income	Exchange differences on translating foreign operations	Combination of units	Exclusion from consolidation	Other**	31/12/2021
Deferred tax assets
Temporary differences related to non-current assets	372	(2)	-	1	3	-	-	374
Provisions and accruals	646	376	(24)	14	6	-	-	1,018
Tax losses	756	(145)	-	48	-	-	-	659
Valuation of derivative financial instruments	48	11	105	3	-	-	-	167
Lease liabilities	991	34	-	4	11	-	-	1,040
Recognised income tax relief related to running a business in a special investment zone	-	-	-	-	-	-	105	105
Other	517	12	-	2	21	-	-	552
	3,330	286	81	72	41	-	105	3,915
Deferred tax liabilities
Temporary differences related to non-current assets	4,108	331	-	42	64	7		4,552
Unrealized foreign exchange differences	247	(9)	-	-	-	-		238
Valuation of derivative financial instruments	105	101	6	2	-	-		214
Other	188	62	3	(4)	4	-		253
	4,648	485	9	40	68	7	-	5,257
	(1,318)	(199)	72	32	(27)	(7)	105	(1,342)

* the line includes also recognition of a joint operation in Rafineria Gdańska at the time of initial recognition
** In connection with the completed investment related to the construction of a glycol production unit in the Kraków Technology Park, ORLEN Południe obtained the right to an investment tax relief in the form of an exemption from corporate income tax, which can be used in subsequent periods in relation to tax income that will be generated from this installation. The deferred tax asset recognized as at 31 December 2022 and 31 December 2021 in relation to the unused tax credit amounted to PLN 55 million and PLN 105 million, respectively. Additional information in the note 14.10.2.1

As at 31 December 2022 deferred tax assets and liabilities amounted to PLN 4,154 million and PLN 7,279 million, respectively.

As at 31 December 2022 and as at 31 December 2021, the Group had unsettled tax losses in the total amount of PLN 2,090 million and PLN 570 million, respectively mainly relating to the PGNiG Group and ENERGA, for which no deferred tax asset was recognised due to the lack of certainty regarding possible utilization of those losses in the future.

ENERGA Tax Capital Group
On 9 November 2020, an agreement establishing a tax group under the name of PGK ENERGA 2021 was executed. The agreement was signed for a term of three fiscal years from 1 January 2021 until 31 December 2023. The agreement was registered by the Head of the Pomorski Tax Authority on 10 December 2020.

The following companies make up the Energa Tax Group: Energa SA, Energa-Operator SA, Energa-Obrót SA, Energa OZE SA, Energa Informatyka i Technologie Sp. z o.o., Energa Logistyka Sp. z o.o. and Energa Oświetlenie Sp. z o.o.

Energa SA was selected as the company representing the Energa Tax Group in respect to the duties arising from the Corporate Income Tax Act and the Tax Ordinance Act.

Energa Tax Group charged income tax on the total income generated from two sources of revenue, namely income on capital gains and income on other revenue. The surplus of total income generated by all companies making up Energa Tax Group from a given source of revenue over their total losses incurred on this source of revenue constitutes the income on the source of revenue.

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