6. Deferred Taxes
The available deferred tax assets relates to argenx US, Inc. and argenx Japan KK which are profitable due to the global transfer pricing model of argenx, and the deferred tax liabilities are related to argenx BV. The amount of deferred tax assets and liability by type of temporary difference can be detailed as follow:
|
|
At December 31, 2022 |
||||
(in thousands of $) |
|
Assets |
|
Liabilities |
|
Net |
Deferred tax assets/(liabilities) |
|
|
|
|
|
|
Accruals and allowances |
|
8,884 |
|
– |
|
8,884 |
Income tax benefit from excess tax deductions related to share-based payments |
|
26,887 |
|
– |
|
26,887 |
Profit in inventory |
|
29,711 |
|
– |
|
29,711 |
R&D capitalized expense |
|
11,316 |
|
– |
|
– |
Property, plant and equipment |
|
2,569 |
|
(549) |
|
2,020 |
Intangible assets |
|
– |
|
(3,430) |
|
(3,430) |
Non-current fixed assets |
|
– |
|
(4,975) |
|
(4,975) |
Other |
|
404 |
|
– |
|
404 |
Netting by taxable entity |
|
(549) |
|
549 |
|
– |
|
|
|
|
|
|
|
Net deferred tax assets/(liabilities) |
|
79,222 |
|
(8,406) |
|
70,817 |
|
|
At December 31, 2021 |
||||
(in thousands of $) |
|
Assets |
|
Liabilities |
|
Net |
Deferred tax assets/(liabilities) |
|
|
|
|
|
|
Accruals and allowances |
|
2,858 |
|
– |
|
2,858 |
Income tax benefit from excess tax deductions related to share-based payments |
|
26,026 |
|
– |
|
26,026 |
Profit in inventory |
|
3,305 |
|
– |
|
3,305 |
Property, plant and equipment |
|
532 |
|
(740) |
|
(208) |
Intangible assets |
|
– |
|
(2,714) |
|
(2,714) |
Non-current fixed assets |
|
– |
|
(3,725) |
|
(3,725) |
Other |
|
210 |
|
– |
|
210 |
Netting by taxable entity |
|
(740) |
|
740 |
|
– |
|
|
|
|
|
|
|
Net deferred tax assets/(liabilities) |
|
32,191 |
|
(6,438) |
|
25,753 |
|
|
At December 31, 2020 |
||||
(in thousands of $) |
|
Assets |
|
Liabilities |
|
Net |
Deferred tax assets/(liabilities) |
|
|
|
|
|
|
Accruals and allowances |
|
2,147 |
|
– |
|
2,147 |
Income tax benefit from excess tax deductions related to share-based payments |
|
13,362 |
|
– |
|
13,362 |
Property, plant and equipment |
|
– |
|
(167) |
|
(167) |
Intangible assets |
|
– |
|
(1,792) |
|
(1,792) |
Other |
|
– |
|
– |
|
– |
Netting by taxable entity |
|
(471) |
|
471 |
|
– |
|
|
|
|
|
|
|
Net deferred tax assets/(liabilities) |
|
15,038 |
|
(1,487) |
|
13,551 |
The change in net deferred taxes recorded in the consolidated statements of financial position can be detailed as follows:
(in thousands of $) |
|
Deferred tax assets |
|
|
Balance at January 1, 2022 |
|
32,191 |
|
(6,438) |
Recognized in profit or loss |
|
49,075 |
|
(2,180) |
Recognized in equity |
|
(1,960) |
|
– |
Effects of change in foreign exchange rate |
|
(84) |
|
212 |
Balance at December 31, 2022 |
|
79,222 |
|
(8,406) |
(in thousands of $) |
|
Deferred tax assets |
|
|
Balance at January 1, 2021 |
|
15,038 |
|
(1,487) |
Recognized in profit or loss |
|
11,385 |
|
(5,082) |
Recognized in equity |
|
5,494 |
|
– |
Effects of change in foreign exchange rate |
|
274 |
|
131 |
Balance at December 31, 2021 |
|
32,191 |
|
(6,438) |
(in thousands of $) |
|
Deferred tax assets |
|
|
Balance at January 1, 2020 |
|
– |
|
– |
Recognized in profit or loss |
|
8,351 |
|
(1,384) |
Recognized in equity |
|
6,225 |
|
– |
Effects of change in foreign exchange rate |
|
462 |
|
(103) |
Balance at December 31, 2020 |
|
15,038 |
|
(1,487) |