Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

Taxation

v3.24.1.1.u2
Taxation
 12 Months Ended
Dec. 31, 2023
Major components of tax expense (income) [abstract]  
Taxation Taxation
30.1. Income taxes
Income tax expense recognized in the consolidated statement of profit or loss
The major components of income tax expense recognized in the consolidated statement of profit or loss for the years ended December 31, 2023, 2022 and 2021 are as follows:
(in €‘000) 2023 2022 2021
Current income tax expense
Current income tax expense for the year (927) (1,058) (200)
Adjustments in respect of current income tax of previous years (34) (64) — 
Total current tax expense (961) (1,122) (200)
Deferred tax expense
Origination and reversal of temporary differences and tax losses 11,609  16,950  — 
(De)recognition of deferred tax assets (11,152) (16,464) (152)
Total deferred tax expense 457  486  (152)
Income tax expense (504) (636) (352)
Reconciliation of effective tax rate
The following table provides a reconciliation of the statutory income tax rate with the average effective income tax rate in the consolidated statement of profit or loss for the years ended December 31, 2023, 2022 and 2021:
2023 2022 2021
(in €‘000) % (in €‘000) % (in €‘000) %
Effective tax reconciliation
Loss before income tax (109,778) (304,656) (319,320)
Income tax at statutory tax rate of the Netherlands 28,323  (25.8) 78,601  (25.8) 79,830  (25.0)
Adjustments to arrive at the effective tax rate:
Impact of different tax rates of local jurisdictions 31  —  165  (0.1) —  0.0 
Non-taxable income 96  (0.1) 7,987  (2.6) —  — 
Non-deductible expenses (8,387) 7.6  (68,372) 22.4  (74,033) 23.2 
Temporary differences for which no deferred tax is recognized (9,305) 8.5  (2,412) 0.8  (5,997) 1.9 
Adjustments previous year (34) —  (64) —  —  — 
(De)recognition of (un)recognized deferred tax assets (11,152) 10.2  (16,464) 5.4  (152) — 
Other (76) 0.1  (77) —  —  — 
Effective tax (rate) (504) 0.5  (636) 0.2  (352) 0.1 
Uncertain tax positions
Liabilities for uncertain tax positions are recognized if and to the extent it is probable that additional taxes will become due. Our assessments are based on our best estimate of how the tax authorities concerned are likely to evaluate and respond to the cases in question, taking into account expert advice. Uncertain tax positions for which liabilities have been recorded, mainly relate to international transfer pricing and tax deductibility of expenses.
30.2. Deferred taxes
Deferred tax assets and liabilities
(in €‘000) 2023 2022
Deferred tax assets 523  570 
Deferred tax liabilities (2,184) — 
Balance at January 1 (1,661) 570 
Movements in deferred tax
Recognition of losses 257  (87)
Acquisitions / Divestments —  (3,043)
Movements of temporary differences 662  899 
Recognition of tax credits —  — 
Balance at December 31 (742) (1,661)
Deferred tax assets 807  523 
Deferred tax liabilities (1,549) (2,184)
Balance at December 31 (742) (1,661)
Origination of deferred tax assets and liabilities
The following table provides the origination of deferred tax assets and liabilities during the years ended December 31, 2023 and 2022 and where those movements have been recorded: the consolidated statement of profit or loss (“profit or loss”) or directly in equity or other comprehensive income (OCI).
Recognized in
(in €‘000) Net balance
January 1		 Acquisitions / divestments Profit
or loss		 Equity / OCI Net balance
December 31		 DTA DTL
Movements in 2022
Property, plant and equipment 281  —  245  —  526  981  (455)
Intangible assets —  (2,242) 460  —  (1,782) —  (1,782)
Right-of-use assets (7,469) (484) (4,132) —  (12,085) —  (12,085)
Trade and other receivables —  396  53  —  449  449  — 
Inventories —  —  —  —  —  —  — 
Non-current lease liabilities 4,826  441  4,048  —  9,315  9,315  — 
Current lease liabilities 1,706  43  85  —  1,834  1,834  — 
Provisions —  101  8  (2) 107  107  — 
Trade and other payables 561  —  (193) —  368  374  (6)
Investments in equity securities —  (1,298) —  328  (970) —  (970)
Net operating losses 665  —  (88) —  577  577  — 
Interest carry forward —  —  —  —  —  —  — 
Total 570  (3,043) 486  326  (1,661) 13,637  (15,298)
Set-off of deferred tax balances pursuant to set-off provisions*
(13,114) 13,114 
Net deferred tax balances at December 31, 2022 523  (2,184)
Movements in 2023
Property, plant and equipment 526  —  (741) —  (215) —  (215)
Intangible assets (1,782) —  (10) —  (1,792) —  (1,792)
Right-of-use assets (12,085) —  (8,802) —  (20,887) —  (20,887)
Trade and other receivables 449  —  164  —  613  628  (15)
Inventories —  —  —  —  —  —  — 
Non-current lease liabilities 9,315  —  8,468  —  17,783  20,114  (2,331)
Current lease liabilities 1,834  —  1,287  —  3,121  3,121  — 
Provisions 107  —  15  1  123  123  — 
Trade and other payables 368  —  (181) —  187  187  — 
Investments in equity securities (970) —  —  461  (509) —  (509)
Net operating losses 577  —  257  —  834  834  — 
Interest carry forward —  —  —  —  —  —  — 
Total (1,661) —  457  462  (742) 25,007  (25,749)
Set-off of deferred tax balances pursuant to set-off provisions*
(24,200) 24,200 
Net deferred tax balances at December 31, 2023 807  (1,549)
* The presentation in the balance sheet takes into consideration the offsetting of deferred tax assets and deferred tax liabilities within the same tax jurisdiction if permitted. The overall deferred tax position in a particular tax jurisdiction determines if a deferred tax balance related to that jurisdiction is presented within deferred tax assets or deferred tax liabilities.
Unrecognized deferred tax assets
(in €‘000) December 31, 2023 December 31, 2022
Tax losses 234,538  197,171 
Deductible temporary differences 30,121  17,679 
Tax credits —  — 
Interest carry forward 60,249  36,612 
Total 324,908  251,462 
Potential tax benefit 84,793  65,832 
Interest carry forwards do not expire.
Estimates and assumptions
Refer to Note 2.7.23 for details on estimates and assumptions made with respect to the recognition of deferred tax assets.
Changes to the Dutch corporate income tax law
As per January 1, 2022 changes to the Dutch corporate income tax law have been enacted and become effective. These changes have resulted in the following:
•The carry back period remains one year.
•Unused tax losses available for carry forward do not longer have an expiry date.
•The amount of unused tax losses available for carry forward without an expiry date has been maximized to 50% of taxable profits for the year in excess of € 1 million.
•The revised carry forward period applies to all tax losses arising as of January 1, 2022 and to unused tax losses available for carry forward as of that date to the extent that these tax losses have arisen in fiscal years that commenced on or after January 1, 2013.
The corporate income tax rate from 2024, remains 25.8% (2022: increase from 25.0% to 25.8%), for taxable income in excess of €200 thousand (2023: €395 thousand; 2022: €395 thousand). The corporate income tax rate for taxable income up to €200 thousand (2023: €395 thousand, 2022: €395 thousand) increased from 15.0% to 19.0%. Consequently, the relevant deferred tax balances have been remeasured in 2022.
Expiration year of loss carryforwards
As at December 31, 2023, the Group had unused tax losses available for carryforward for an amount of €234,538 thousand (December 31, 2022: €197,171 thousand) as unrecognized losses and for an amount of €2,616 thousand (December 31, 2022: €1,941 thousand) as recognized losses, in total €237,155 thousand (December 31, 2022: €199,112 thousand). These unused tax losses do not have an expiry date for all periods presented.
30.3. Fiscal unity for Dutch corporate income tax purposes
Exclusion from the fiscal unity for Dutch corporate income tax purposes
As of June 1, 2018, Allego Holding and its Dutch wholly-owned subsidiaries formed a fiscal unity with Madeleine — Allego Holding’s then immediate parent entity — and Opera Charging B.V. (“Opera”—parent entity of Madeleine) for Dutch corporate income tax purposes. The completion of the SPAC Transaction has resulted in the exclusion of Allego Holding B.V. and the Dutch wholly-owned subsidiaries from the fiscal unity headed by Opera.
During the year ended December 31, 2022, the Group has prepared and filed a request with the Dutch Tax Authorities (“DTA”) for upfront certainty regarding the consequences of the exclusion from the fiscal unity.
The Group submitted the request to the DTA on July 28, 2021. The Group has reached an agreement with the DTA on January 18, 2022 on this request. The agreement with the Dutch Tax Authorities mitigates potential discussions on the various tax topics that have been agreed upon. Additionally, the agreement provides the Group with tax certainty regarding the dissolution of the fiscal unity for Dutch corporate income tax purposes headed by Opera and the related Dutch corporate income tax considerations for the year ended December 31, 2018 up to and including the year ended December 31, 2022 and fiscal year 2023 until the moment of exclusion from the fiscal unity.
Following the Business Combination consummated on March 16, 2022, Allego N.V. (being the parent company) formed a new fiscal unity with Allego Holding BV, Allego BV, Allego Employment and Allego Innovations BV for Dutch corporate income tax purposes.