CapitaLand Ascott Trust 192 Notes to the Financial Statements For the financial year ended 31 December 2025 Deferred tax liabilities and assets are offset when there is a legally enforceable right to set off current tax liabilities and when the deferred taxes relate to the same tax authority. The amounts determined after appropriate offsetting are included in the Statements of Financial Position as follows: CapitaLand Ascott REIT Group CapitaLand Ascott BT Group Stapled Group 2025 $’000 2024 $’000 2025 $’000 2024 $’000 2025 $’000 2024 $’000 Deferred tax assets 14,950 15,069 2,604 3,828 17,554 18,897 Deferred tax liabilities (221,147) (166,847) (49,048) (43,623) (270,195) (210,470) As at 31 December 2025, deferred tax liabilities amounting to $5,748,000 (2024: $5,322,000) had not been recognised for taxes that would be payable on the undistributed earnings of certain subsidiaries as these earnings would not be distributed in the foreseeable future. A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against which temporary differences can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised. Deferred tax assets have not been recognised in respect of the following items because it is not probable that future taxable profit will be available against which the CapitaLand Ascott REIT Group, the CapitaLand Ascott BT Group and the Stapled Group can utilise the benefits therefrom: CapitaLand Ascott REIT Group CapitaLand Ascott BT Group Stapled Group 2025 $’000 2024 $’000 2025 $’000 2024 $’000 2025 $’000 2024 $’000 Tax losses 196,620 206,303 1,176 – 197,796 206,303 Deductible temporary differences 7,425 5,934 – – 7,425 5,934 204,045 212,237 1,176 – 205,221 212,237 Tax losses are subject to agreement by the tax authorities and compliance with tax regulations in the respective countries in which the subsidiaries operate. The deductible temporary differences do not expire under the current tax legislation. Unrecognised tax losses brought forward of the Stapled Group amounting to $4,968,000 (2024: $2,833,000) expired during the year. In addition, $16,218,000 (2024: $37,903,000) of the losses brought forward were utilised to set off against current year’s taxable profit and $1,061,000 (2024: Nil) was divested. The remaining balance of $184,056,000 (2024: $184,088,000) and unrecognised tax losses arising during the year of $13,740,000 (2024: $22,215,000) have been carried forward. Tax losses that have been carried forward are subject to expiration as follows: CapitaLand Ascott REIT Group CapitaLand Ascott BT Group Stapled Group 2025 $’000 2024 $’000 2025 $’000 2024 $’000 2025 $’000 2024 $’000 Expiry dates - No expiry 163,116 172,945 1,176 – 164,292 172,945 - Within 1 to 5 years 29,828 29,082 – – 29,828 29,082 - After 5 years 3,676 4,276 – – 3,676 4,276 196,620 206,303 1,176 – 197,796 206,303 12 Deferred Tax (continued)
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