Koninklijke Philips N.V. – Annual report – 31 December 2025
Industry: manufacturing
8 Income taxes (extract 1)
In 2025, there has been no change relating to de-recognized deferred tax assets in the US. As of December 31, 2025, the amount of deductible temporary differences for which no deferred tax asset has been recognized in the balance sheet was EUR 352 million (2024: EUR 788 million). The reduction in the unrecognized balance of temporary differences mainly reflects a reclassification to unrecognized tax loss balances in the US, which is mainly driven by shift of carrying deferred tax assets on temporary differences to tax losses, which is recorded in ‘Recognized in income statement’
8 Income taxes (extract 2)
The company has available tax loss and credit carryforwards, which expire as expressed in the accompanying table.
Philips Group
Expiry years of net operating loss and credit carryforwards in millions of EUR
| Total balance as of December 31, 2025 | Unrecognized balance as of December 31, 2025 | Total balance as of December 31, 2024 | Unrecognized balance as of December 31, 2024 | |
| Within 1 year | 4 | 4 | 21 | 21 |
| 1 to 2 years | 5 | 3 | 5 | 4 |
| 2 to 3 years | 11 | 5 | 6 | 3 |
| 3 to 4 years | 97 | 60 | 15 | 6 |
| 4 to 5 years | 122 | 74 | 146 | 64 |
| Later | 680 | 670 | 807 | 771 |
| Unlimited | 4,711 | 2,978 | 3,342 | 1,695 |
| Total | 5,628 | 3,794 | 4,342 | 2,564 |
The increase in the unrecognized balance on tax losses as of December 31, 2025, mainly relates to the reclassification from unrecognized balance of temporary differences, as noted above.
Accounts examples 