NATIXIS - Universal registration document and financial report 2019

FINANCIAL DATA Consolidated financial statements and notes

8.8

Deferred tax assets and liabilities

31/12/2019

31/12/2018

Deferred tax liabilities

Deferred tax liabilities

Deferred tax assets

Deferred tax assets

Standard

(in millions of euros)

Standard

Sources of deferred taxes (a) Tax amortization of goodwill (b) Provision for employee benefits Other non-deducted provisions

(1,295)

(1,266)

231

385

1,295

1,354

Non-deducted accrued expenses (including deferred compensation)

535

468

Elimination of equalization reserve

(321) (141) 7,396

(317) (121) 7,606

Other sources of deferred tax through profit or loss

Ordinary tax losses

Unrecognized sources of deferred tax

(4,617)

(4,568)

TOTAL SOURCES OF DEFERRED TAX THROUGH PROFIT OR LOSS Sources of deferred tax on recyclable OCI Sources of deferred tax on non-recyclable OCI

3,083 (745)

1,350

476 164 (24) 616

3,542 (388)

1,416

398

(7) 45

2

83 23

274

40

38

TOTAL SOURCES OF DEFERRED TAX 505 Positive amounts represent sources of deferred tax giving rise to deferred tax assets, while negative amounts represent sources giving rise to deferred tax (a) liabilities. Deferred tax related to the tax amortization of goodwill in the United States. (b) 2,612 1,388 3,193 1,456

5

Breakdown of deferred tax assets on losses by geographic area

Legal carryforward period

Max. recognition period

(in millions of euros)

31/12/2018

31/12/2019

Deferred tax assets on losses by geographic area France (a)

641

709 Unlimited 10 years

United States

47

47

Unlimited (b)

10 years (c)

United Kingdom

Unlimited 10 years

Other

101 789

110

TOTAL 866 At 31/12/2019, deferred tax assets on losses were recognized in the amount of €789 million, of which €641 million was activated in respect of the tax (a) consolidation group in France. The base of the tax loss recognized for the tax consolidation group in France amounts to €2,455 million, out of a total stock of tax loss carryforwards of €4,350 million. At December 31, 2019, Natixis conducted tests to measure the potential impact on deferred tax assets of the assumptions applied when implementing its tax business plans. These tests, which notably measure the impact of a +/- 10% change in the GDP growth assumptions applied, confirm the likelihood of Natixis being able to deduct future taxable profits, used to calculate the deferred taxes activated, from tax losses. Except for tax losses that arose prior to January 1, 2018 (limited to 20 years). (b) As for the federal deficit, the “State” and “City” portions may be activated over longer periods (limited to the legal time limit). (c)

319

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2019