BASF Report 2021 Consoli dated Financial Statements – Notes 234 Deferred tax assets and liabilities 2020 Million € January 1, 2020, Effects recognized Effects recognized Business December 31, Deferred tax Deferred tax net in income in equity (OCI) combinations Other 2020, net assets liabilities Intangible assets –934 –8 33 –42 –4 –955 89 –1,044 Property, plant and equipment –1,081 –65 101 –36 13 –1,068 246 –1,314 Financial assets –136 64 5 – –7 –74 44 –118 Inventories and accounts receivable –199 82 –31 –3 –18 –169 232 –401 Provisions for pensions and similar obligations 2,424 28 384 14 1 2,851 3,342 –491 Other provisions and liabilities 841 42 –91 3 36 831 986 –155 Tax loss carryforwards 193 332 –11 1 –10 505 505 – Other 15 14 –9 2 –4 18 82 –64 Deferred tax assets (liabilities) before netting 1,123 489 381 –61 7 1,939 5,526 –3,587 Netting – – – – – – –2,140 2,140 Deferred tax assets (liabilities) after netting 1,123 489 381 –61 7 1,939 3,386 –1,447 Deferred tax assets on deductible temporary differences in the Tax loss carryforwards Tax liabilities amount of €245 million were not recognized in 2021 (2020: €182 million), as their utilization at reversal was not reasonably No deferred tax assets were recognized for tax loss carryforwards of Tax liabilities primarily include assessed income taxes and other certain. €172 million in 2021 (2020: €257 million). Of these, €3 million will taxes as well as estimated income taxes not yet assessed for the expire in 2022, €4 million in 2023, €2 million in 2024, €12 million in current year. Undistributed earnings of subsidiaries resulted in temporary 2025, €52 million in 2026, and €20 million in 2027 and thereafter. differences of €11,587 million in 2021 (2020: €10,398 million) for The remaining €79 million will not expire. which deferred tax liabilities were not recognized, as they are either not subject to taxation on payout or they are expected to be Surpluses of deferred tax assets for companies that reported tax reinvested for an indefinite period of time. losses in 2021 or 2020 totaled €2,379 million as of Decem- ber 31, 2021 (December 31, 2020: €2,645 million). Deferred taxes were recognized because, due to planned earnings, the use of temporary differences or loss carryforwards is expected.