v3.25.4
Income taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income taxes [Abstract]  
Income tax expense The components of income before taxes and income tax expense are:
Philips Group
Income tax expense in millions of EUR
2025
2024
2023
Income before taxes
1,182
123
(526)
Results of associates
(9)
(124)
(98)
Income before taxes excluding results of associates
1,191
247
(429)
Current tax (expense) benefit
(305)
(140)
(201)
Deferred tax (expense) benefit
24
(823)
274
Income tax (expense) benefit of continuing operations
(282)
(963)
73
Current income tax expense The components of income tax expense of continuing operations are:
Philips Group
Current income tax expense in millions of EUR
2025
2024
2023
Current year tax (expense) benefit
(304)
(150)
(211)
Prior year tax (expense) benefit
(1)
9
10
Current tax (expense) benefit
(305)
(140)
(201)
Deferred income tax expense Philips Group
Deferred income tax expense in millions of EUR
2025
2024
2023
Recognition of previously unrecognized tax loss and credit
carryforwards
33
5
72
Unrecognized tax loss and credit carryforwards
(26)
(351)
(41)
Changes to recognition of temporary differences
19
(602)
(112)
Prior year tax (expense) benefit
(9)
(13)
(2)
Tax rate changes
(12)
2
4
Origination and reversal of temporary differences, tax losses and
tax credits
19
136
353
Deferred tax (expense) benefit
24
(823)
274
Effective income tax rate A reconciliation of the weighted average statutory income tax rate to the effective income tax rate of
continuing operations is addressed in the accompanying table.
Philips Group
Effective income tax rate in %
2025
2024
2023
Weighted average statutory income tax rate in %
25.9
26.6
22.0
Recognition of previously unrecognized tax loss and credit
carryforwards
(2.7)
(1.9)
16.8
Unrecognized tax loss and credit carryforwards
2.2
141.8
(9.6)
Changes to recognition of temporary differences
(1.6)
243.6
(26.2)
Non-taxable income and tax incentives
(7.9)
(30.2)
22.8
Non-deductible expenses
2.9
10.0
(10.7)
Withholding and other taxes
1.9
16.0
(5.1)
Tax rate changes
1.0
(0.9)
0.9
Prior year tax
0.8
1.2
1.9
Tax expense (benefit) due to change in uncertain tax treatments
0.9
(20.4)
2.3
Others, net
0.2
3.1
1.9
Effective income tax rate
23.6
389.5
17.0
Deferred tax assets and liabilities Net deferred tax assets relating to the years 2025 and 2024, respectively, are presented here.
Philips Group
Deferred tax assets and liabilities in millions of EUR
Balance as
of January
1, 2025
Recognized
in income
statement
Other ¹
Balance as
of
December
31, 2025
Assets
Liabilities
Intangible assets
373
(45)
(27)
301
448
(147)
Property, plant and equipment
(64)
9
9
(46)
50
(96)
Inventories
364
(13)
(37)
314
315
(1)
Other assets
151
12
(10)
152
205
(53)
Pensions and other long-term employee
benefits
152
29
(9)
172
180
(7)
Other liabilities
319
(29)
(16)
274
312
(38)
Deferred tax assets on tax loss
carryforwards
541
61
(88)
513
513
-
Set-off deferred tax positions
-
-
-
-
(250)
250
Net deferred tax assets
1,835
24
(178)
1,681
1,773
(93)
1Other includes the movements of assets and liabilities recognized in equity and OCI, which includes foreign currency translation
differences, acquisitions, reclassifications and divestments.
Philips Group
Deferred tax assets and liabilities in millions of EUR
Balance as
of January
1, 2024
Recognized
in income
statement
Other ¹
Balance as
of
December
31, 2024
Assets
Liabilities
Intangible assets
679
(333)
26
373
533
(160)
Property, plant and equipment
(88)
25
(1)
(64)
39
(103)
Inventories
360
(9)
13
364
369
(5)
Other assets
184
(25)
(9)
151
207
(56)
Pensions and other employee benefits
193
(61)
20
152
179
(27)
Other liabilities
496
(198)
20
319
365
(47)
Deferred tax assets on tax loss
carryforwards
730
(222)
33
541
541
-
Set-off deferred tax positions
-
-
-
-
(317)
317
Net deferred tax assets
2,556
(823)
102
1,835
1,916
(81)
1Other includes the movements of assets and liabilities recognized in equity and OCI, which includes foreign currency translation
differences, acquisitions, reclassifications and divestments.
Expiry years of net operating loss and credit carryforwards 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
Income tax liabilities 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.
Philips Group
Income tax liabilities in millions of EUR
2025
2024
Uncertain Tax Positions ¹
(70)
-
Income tax payable
(104)
(71)
Income tax liabilities
(174)
(71)
¹ Uncertain tax positions were shown as non-current tax liabilities in 2024.