v3.26.1
Income tax income/(expense)
 12 Months Ended
Dec. 31, 2025
Income taxes paid (refund) [abstract]  
Income tax benefit/(expense)
5.10 Income tax income/(expense)
The tax expense for the period comprises current and deferred tax. Tax is recognized in the income statement, except to the extent that it relates to items recognized in other comprehensive income or directly in equity. In this case, the tax is also recognized in other comprehensive income or directly in equity, as the case may be. The current Income tax income/(expense) is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Group’s subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions, where appropriate, based on amounts expected to be paid to the tax authorities.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled.
Deferred income tax assets are recognized to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized.
Deferred income tax is provided on temporary differences arising on investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not be reversed within the foreseeable future.
5.10.1 Current income tax
Income tax income/(expense) is comprised of current and deferred tax.
Year ended December 31,
in € thousand202520242023
CURRENT TAX
Current income tax charge(502)(2,595)(931)
Adjustments in respect of current income tax of previous year93 (119)(175)
DEFERRED TAX
Relating to origination and reversal of temporary differences(664)1,953 (1,695)
INCOME TAX BENEFIT/(EXPENSE)(1,073)(761)(2,800)
The individual entities’ reconciliations, which are prepared on the basis of the tax rates applicable in each country while taking consolidation procedures into account, have been summarized in the reconciliation below. The estimated tax charge is reconciled to the effective tax charge disclosed.
The tax on the Group’s loss before tax differs from the theoretical amount that would arise using the weighted average tax rate applicable to profits of the consolidated companies as follows:
Year ended December 31,
in € thousand202520242023
PROFIT/(LOSS) BEFORE TAX
(114,119)
(11,486)
(98,629)
Tax calculated at domestic tax rates applicable to profits in the respective countries26,212 2,953 23,400 
Income not subject to tax (mainly R&D tax credit)1,517 3,630 190 
Expenses not deductible for tax purposes(4,417)(3,391)(1,902)
Deferred tax asset not recognized(24,977)(3,896)(23,360)
Utilization of previously unrecognized tax losses246 172 (1,593)
Income tax credit/withholding tax/other adjustments258 168 553 
Effect of change in applicable tax rate(12)(34)(160)
Exchange differences7 (244)(25)
Income tax of prior years93 (119)98 
Minimum income tax(1)— (2)
INCOME TAX BENEFIT/(EXPENSE)(1,073)(761)(2,800)
Effective income tax rate— — — 
In the year ended December 31, 2025, although the Group operated at a loss overall, there were profitable entities with revenues from the sale of commercialized travel vaccines and from the sale of third-party products.
5.10.2 Deferred tax
As at December 31, 2025, the deferred tax assets of €227.6 million (December 31, 2024: €201.4 million) were not recognized as there was not sufficient evidence that adequate taxable profit will be available against which the unused tax losses can be utilized in the foreseeable future. Deferred tax assets were only recognized for entities where sufficient evidence has been provided that adequate taxable profit will be available against which the unused tax losses can be utilized in the foreseeable future.
As at December 31, 2025, the Group had tax losses carried forward of €899.6 million (December 31, 2024: €843.6 million), of which €308.3 million related to Valneva SE (December 31, 2024: €307.3 million), €576.5 million related to Valneva Austria GmbH (December 31, 2024: €516.0 million), €11.6 million related to Valneva Sweden AB (December 31, 2024: €9.2 million), €0.9 million related to Vaccines Holdings Sweden AB (December 31, 2024: €0.8 million) and €2.3 million related to Valneva USA, Inc. (December 31, 2024: zero)
Tax losses carried forward in France, Austria, the United Kingdom, Sweden, and U.S. have no expiry date. The Group is assessing on a regular basis the effective capacity to use these tax losses carried forward. They may be used or maintained dependent on potential changes to the corporate footprint and future profitability.
The gross movement on the deferred income tax account was as follows:
Year ended December 31,
in € thousand202520242023
BEGINNING OF THE YEAR
5,443 
2,954 
4,943 
Exchange differences(836)536 (294)
Income statement charge / (credit)(664)1,953 (1,695)
END OF THE YEAR3,943 5,443 2,954 
The deferred tax assets and liabilities are allocable to the various balance sheet items as follows:
Year ended December 31,
in € thousand202520242023
DEFERRED TAX ASSET FROM
Tax losses carried forward212,876 200,153 207,858 
Fixed assets1,339 1,444 1,765 
Inventory3,567 7,325 4,388 
Borrowings and accrued interest20,824 9,909 4,722 
Provision1,793 1,564 1,501 
Other items861 318 217 
Non-recognition of deferred tax assets(227,620)(201,356)(204,529)
TOTAL DEFERRED TAX ASSETS13,639 19,357 15,921 
DEFERRED TAX LIABILITY FROM
Fixed assets(4,522)(6,963)(6,364)
Intangible assets(3,793)(5,517)(5,157)
Other items(1,382)(1,435)(1,446)
TOTAL DEFERRED TAX LIABILITY(9,697)(13,915)(12,967)
DEFERRED TAX, NET3,943 5,443 2,954 
The corporate income tax rates remained stable across jurisdictions, with the exception of in U.S., where the corporate income tax rate decreased from 27.72% in 2024 to 27.64% in 2025. The deferred tax assets and liabilities presented above as at December 31, 2025 and December 31, 2024 have been adjusted for this change in the tax rate.